What law supersedes any inconsistent provision in the Carls Jr. Franchise Agreement if the franchisee is in Wisconsin?
Carls_Jr Franchise · 2025 FDDAnswer from 2025 FDD Document
-----|-------| | | | | | between | | Carl's | Jr. | Restaurants | LLC | ("CJR") | and | | | ("Franchisee") is entered into simultaneously | | | | | | | | | | | | | with the execution of the Franchise Agreement. | | | | | | | | | | |
- 1. The provisions of this Addendum form an integral part of, and are incorporated into, the Franchise Agreement. This Addendum is being executed because: (A) the offer or sale of a franchise to Franchisee was made in the State of Wisconsin; (B) Franchisee is a resident of the State of Wisconsin; and/or (C) the Franchised Restaurant will be located or operated in the State of Wisconsin.
- 2. The Wisconsin Fair Dealership Law, Chapter 135, Stats., supersedes any provision of the Franchise Agreement inconsistent with that law.
- 3. The following paragraph is added to the end of Sections 2.B. and 18:
Section 135.04 of the Wisconsin Fair Dealership Law includes the requirement that, in certain circumstances, a franchisee receive 90 days' notice of termination, cancellation, non-renewal or substantial change in competitive circumstances. The notice shall state all the reasons for termination, cancellation, non-renewal or substantial change in competitive circumstances and shall provide that the franchisee has 60 days in which to rectify any claimed deficiency and shall supersede the requirements of paragraph 18 of the Franchise Agreement to the extent they may be inconsistent with the Law's requirements. If the deficiency is rectified within 60 days the notice shall be void.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 75)
What This Means (2025 FDD)
According to the 2025 Carls Jr. Franchise Disclosure Document, the Wisconsin Fair Dealership Law, specifically Chapter 135, Stats., takes precedence over any conflicting terms within the Franchise Agreement if the franchisee is based in Wisconsin. This means that if any part of the Carls Jr. franchise agreement clashes with the Wisconsin Fair Dealership Law, the state law will be the governing rule.
This protection is significant for prospective Carls Jr. franchisees in Wisconsin because it ensures that the franchise agreement adheres to the standards and protections provided by Wisconsin law. For instance, the addendum highlights that Section 135.04 of the Wisconsin Fair Dealership Law mandates that franchisees, under certain conditions, must receive a 90-day notice of termination, cancellation, non-renewal, or substantial changes in competitive circumstances. This notice must detail the reasons for such actions and allow the franchisee 60 days to rectify any deficiencies. These stipulations supersede the standard requirements outlined in paragraph 18 of the Franchise Agreement if inconsistencies arise.
However, these notice provisions do not apply in cases of insolvency, assignment for the benefit of creditors, or bankruptcy. Additionally, if termination, cancellation, non-renewal, or substantial changes are due to nonpayment, the franchisee is entitled to a written notice of default and a 10-day period to remedy the default. This addendum ensures that Carls Jr. franchisees in Wisconsin benefit from the specific protections afforded by state law, which can provide more favorable terms than the standard franchise agreement.
It is important to note that the provisions of the addendum are effective only to the extent that the jurisdictional requirements of the Wisconsin Fair Dealership Law are met independently of the addendum. Except as expressly modified by the addendum, the Franchise Agreement remains unmodified and in full force and effect.