What Wisconsin statute governs Chem Dry Franchise Agreements issued in the State of Wisconsin?
Chem_Dry Franchise · 2024 FDDAnswer from 2024 FDD Document
The following provisions supersede the Disclosure Document and apply to all franchises offered and sold in the State of Wisconsin.
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- REGISTRATION DOES NOT CONSTITUTE APPROVAL, RECOMMENDATION OR ENDORSEMENT BY THE COMMISSIONER OF SECURITIES OF THE STATE OF WISCONSIN.
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- The following applies to Franchise Agreements in the State of Wisconsin:
- (a) The Wisconsin Fair Dealership Act, Wisconsin Statutes, Chapter 135 (the Act), shall apply to and govern the provisions of Franchise Agreements issued 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, the Wisconsin Fair Dealership Act, specifically Chapter 135 of the Wisconsin Statutes, governs the provisions of Chem Dry Franchise Agreements issued in Wisconsin.
This Act mandates that Chem Dry must provide a franchisee at least 90 days' prior written notice of termination, cancellation, or substantial changes in competitive circumstances. This notice must detail all reasons for such actions and allow the franchisee 60 days to cure any claimed deficiency. If the franchisee successfully addresses the deficiency within this period, the notice becomes void.
However, if the reason for termination, cancellation, or substantial change is due to nonpayment of sums owed under the franchise agreement, the franchisee has only 10 days to cure the deficiency. This Wisconsin-specific regulation offers franchisees certain protections and rights beyond what might be standard in other states, particularly regarding the termination or alteration of the franchise agreement.