For Bonchon franchises in Wisconsin, how does the Wisconsin Fair Dealership Act affect the termination requirements outlined in Article 17 of the Franchise Agreement?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
Notwithstanding anything to the contrary set forth in the Franchise Agreement, the following provisions will supersede and apply:
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- The Wisconsin Fair Dealership Act, Wisconsin Statutes, Chapter 135 will apply to and govern the provisions of the Franchise Agreement.
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- That Act's requirement, including the requirements that, in certain circumstances, a franchisee receives ninety (90) days' notice of termination, cancellation, non-renewal or substantial change in competitive circumstances, and sixty (60) days to remedy claimed deficiencies, will supersede the requirements of Article 17 of the Franchise Agreement ("Default and Termination") to the extent they may be inconsistent with the Act's requirements.
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- No statement, questionnaire, or acknowledgement signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed in connection with the franchise.
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, the Wisconsin Fair Dealership Act (WFDA) significantly impacts the termination requirements for Bonchon franchises in Wisconsin. Specifically, the WFDA's provisions regarding termination, cancellation, non-renewal, or substantial changes in competitive circumstances will supersede Article 17 of the Franchise Agreement to the extent that they are inconsistent. This means that Bonchon franchisees in Wisconsin benefit from the protections afforded by the WFDA, which may offer more favorable terms than the standard franchise agreement.
The WFDA mandates that franchisees in Wisconsin receive at least ninety (90) days' notice of termination, cancellation, non-renewal, or substantial change in competitive circumstances. Additionally, franchisees are entitled to sixty (60) days to remedy any claimed deficiencies. These stipulations replace any conflicting requirements found in Article 17 of the Bonchon Franchise Agreement, ensuring that Wisconsin franchisees have adequate time to address issues and potentially avoid termination.
This addendum also clarifies that no statement, questionnaire, or acknowledgement signed by a Bonchon franchisee can waive claims under any applicable state franchise law, including claims related to fraud in the inducement. Furthermore, franchisees cannot disclaim reliance on statements made by Bonchon or its representatives. This provision reinforces the franchisee's rights and protects them from unknowingly relinquishing legal protections. Therefore, prospective Bonchon franchisees in Wisconsin should carefully review both the Franchise Agreement and the Wisconsin Addendum to fully understand their rights and obligations, particularly concerning termination and renewal.