In Wisconsin, what is the required notice period a Bonchon franchisee must receive for termination, cancellation, non-renewal, or substantial change in competitive circumstances, according to the Wisconsin Fair Dealership Act?
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:
- 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 (WFDA) impacts franchise agreements within the state. Specifically, a Bonchon franchisee in Wisconsin is entitled to a 90-day notice period regarding termination, cancellation, non-renewal, or any substantial change in competitive circumstances. Additionally, the franchisee is granted 60 days to address and remedy any claimed deficiencies. These stipulations supersede any conflicting terms outlined in Article 19 of the standard Bonchon Franchise Agreement, ensuring that Wisconsin franchisees receive the protections mandated by the WFDA.
This provision is crucial for prospective Bonchon franchisees in Wisconsin as it provides a significant buffer period to address any issues that could lead to termination or non-renewal of their franchise agreement. The 90-day notice allows franchisees time to seek legal counsel, negotiate with Bonchon, or take corrective actions to maintain their franchise. The additional 60 days to remedy deficiencies further strengthens the franchisee's position, offering a chance to rectify any shortcomings identified by Bonchon.
It is important to note that the Wisconsin Addendum explicitly states that no agreement signed by the franchisee can waive their rights under applicable state franchise law, including claims of fraud. This ensures that franchisees cannot inadvertently relinquish their protections under the WFDA. This addendum applies not only to the Franchise Agreement but also to the Area Development Agreement, providing consistent protection for both franchisees and area developers within Wisconsin.
Prospective Bonchon franchisees in Wisconsin should carefully review the Wisconsin Addendum to the Franchise Agreement and understand their rights under the Wisconsin Fair Dealership Act. This includes being aware of the specific conditions under which termination can occur and the steps they can take to protect their investment. Consulting with an attorney experienced in franchise law is advisable to fully understand the implications of the WFDA and the Franchise Agreement.