In Wisconsin, if the reason for termination, cancellation or substantial change in competitive circumstances for a Chem Dry franchise is nonpayment of sums due, how many days does the franchisee have to cure the deficiency?
Chem_Dry Franchise · 2024 FDDAnswer from 2024 FDD Document
WISCONSIN
The following provisions supersede the Disclosure Document and apply to all franchises offered and sold in the State of Wisconsin.
-
- The following applies to Franchise Agreements in the State of Wisconsin:
- (b) The Act's requirements that Franchisor must provide franchisee at least 90 days' prior written notice of termination, cancellation, or substantial change in competitive circumstances. This notice will state all the reasons for termination, cancellation or substantial change in competitive circumstances and will provide that franchisee has 60 days in which to cure any claimed deficiency. If the deficiency is cured within 60 days, the notice will be void. If the reason for termination, cancellation or substantial change in competitive circumstances is nonpayment of sums due under the franchise, franchisee will have 10 days to cure the deficiency.
Source: Item 23 — Receipts (FDD pages 68–264)
What This Means (2024 FDD)
According to Chem Dry's 2024 Franchise Disclosure Document, Wisconsin franchisees have specific rights that supersede the standard franchise agreement. If Chem Dry seeks to terminate, cancel, or substantially change the competitive circumstances of a franchise in Wisconsin, the franchisee is entitled to a 90-day prior written notice stating all reasons for the action.
Specifically, Wisconsin law provides a 60-day period for the franchisee to cure any claimed deficiency to avoid termination, cancellation, or changes. However, if the reason for such action is due to nonpayment of sums, the franchisee has a reduced period of only 10 days to cure the deficiency.
This Wisconsin-specific stipulation is important for prospective Chem Dry franchisees in the state, as it shortens the cure period for non-payment issues compared to the general 60-day period for other deficiencies. Franchisees should be aware of this shorter timeframe to ensure they can address any payment issues promptly to avoid potential franchise termination or cancellation.