For Bonchon franchises in Wisconsin, does the Wisconsin Fair Dealership Act supersede Article 19 of the Franchise Agreement regarding default and termination, and if so, under what conditions?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
Notwithstanding anything to the contrary set forth in the Franchise Disclosure Document, the following provisions shall supersede and apply to all franchises offered and sold in the State of Wisconsin:
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- The following shall apply to Franchise Agreements in the State of Wisconsin:
- a. The Wisconsin Fair Dealership Act, Wisconsin Statutes, Chapter 135 shall apply to and govern the provisions of Franchise Agreements issued in the State of Wisconsin.
- b. 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, shall supersede the requirements of Article 19 of the Franchise Agreement ("Default and Termination") to the extent they may be inconsistent with the Act's requirements.
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 does indeed supersede Article 19 of the Franchise Agreement, which pertains to default and termination, for franchises operating in Wisconsin. This is explicitly stated in the Wisconsin Addendum to the Disclosure Document.
The Wisconsin Fair Dealership Act, specifically Chapter 135 of the Wisconsin Statutes, takes precedence over the franchise agreement's provisions. This means that the protections and requirements outlined in the Act will govern the relationship between Bonchon and its Wisconsin franchisees.
One key aspect of this supersession is related to termination notices and the opportunity to remedy deficiencies. The Act mandates that franchisees in certain situations receive a minimum of ninety (90) days' notice of termination, cancellation, non-renewal, or substantial changes in competitive circumstances. Furthermore, franchisees must be given sixty (60) days to correct any claimed deficiencies. These stipulations override any conflicting requirements found in Article 19 of the Bonchon Franchise Agreement, ensuring Wisconsin franchisees benefit from the Act's more protective provisions.