Under what condition will the provisions of the Wisconsin Addendum be effective for a Carls Jr. franchise?

According to the 2025 Carls Jr. Franchise Disclosure Document, the Wisconsin Addendum's provisions become effective only if the jurisdictional requirements of the Wisconsin Fair Dealership Law are independently satisfied, regardless of the Addendum itself. This means that the protections and modifications outlined in the Addendum, which address specific aspects of Wisconsin law, only apply if the franchisee-franchisor relationship meets the criteria established by Wisconsin's Fair Dealership Law.

This conditionality has significant implications for prospective Carls Jr. franchisees in Wisconsin. It means that simply having a Wisconsin Addendum attached to the franchise agreement does not automatically guarantee the franchisee the rights and protections described within it. The franchisee must independently qualify under the Wisconsin Fair Dealership Law.

Carls Jr. franchisees should seek legal counsel to determine whether their particular circumstances meet the jurisdictional requirements of the Wisconsin Fair Dealership Law. This determination would likely involve analyzing the nature of the franchise relationship, the extent of the franchisee's dependence on Carls Jr. for their business, and other factors considered by Wisconsin courts in interpreting the law. Franchisees should not assume that the Addendum provides any benefit unless and until it is confirmed that the underlying requirements of Wisconsin law are met.

This type of provision is not uncommon in franchise agreements, as franchisors often include addenda to address specific state laws while also ensuring that those addenda only apply when the relevant state's jurisdictional requirements are actually met. This approach helps to avoid unintended consequences and ensures that the franchise agreement operates as intended within the legal framework of each state.