factual

What Wisconsin law supersedes any inconsistent provision of the Carls Jr. Development Agreement?

Carls_Jr Franchise · 2025 FDD

Answer from 2025 FDD Document

  • 1. The provisions of this Addendum form an integral part of, and are incorporated into, the Development Agreement. This Addendum is being executed because: (A) the offer or sale of a franchise to Developer was made in the State of Wisconsin; (B) Developer is a resident of the State of Wisconsin; and/or (C) part or all of the Development Territory is located in the State of Wisconsin.
  • 2. The Wisconsin Fair Dealership Law, Chapter 135, Stats., supersedes any provision of the Development Agreement inconsistent with that law.

Source: Item 21 — FINANCIAL STATEMENTS (FDD page 75)

What This Means (2025 FDD)

According to the 2025 Carls Jr. Franchise Disclosure Document, specifically the addendum pertaining to Wisconsin franchisees, the Wisconsin Fair Dealership Law, Chapter 135, Stats., supersedes any provision within the Development Agreement that is inconsistent with it. This addendum is included because the franchise offer or sale was made in Wisconsin, the developer is a Wisconsin resident, or the development territory is located in Wisconsin.

This means that if any part of the Carls Jr. Development Agreement clashes with the Wisconsin Fair Dealership Law, the state law takes precedence. This is designed to protect franchisees operating in Wisconsin and ensures that the franchise agreement adheres to the state's regulations regarding fair dealing between franchisors and franchisees.

For a prospective Carls Jr. developer in Wisconsin, this is a beneficial provision. It offers an additional layer of protection by ensuring that the terms of the Development Agreement comply with Wisconsin law. Franchisees should familiarize themselves with Chapter 135 of the Wisconsin Statutes to understand their rights and obligations under the law, and how it may affect their franchise agreement with Carls Jr.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.