What is the geographic limit to the applicability of the Wisconsin amendment to the Cinch I.T. Franchise Agreement?
Cinch_I_T Franchise · 2024 FDDAnswer from 2024 FDD Document
| This Amendment is entered into this, 20 (the "Effective Date"), between CINCH FRANCHISE, LLC, a Massachusetts limited liability company, with its principal | |
|---|---|
| business address at 27 West Mountain Street, Worcester, Massachusetts 01606 (referred to in | |
| this Amendment as the "Franchisor"), and | |
| , a(n) | |
| whose principal business address is | |
| (referred to in this Amendment as "Developer", "your" or "you") and amends the Multi-Unit | |
| Development Agreement between the parties dated as of the Effective Date, (the "Agreement"). | |
| 1. | The Securities Commissioner of the State of Wisconsin requires that certain provisions |
| contained in franchise documents be amended to be consistent with the Wisconsin Fair Dealership | |
| Law, Wisconsin Statutes, Chapter 135. To the extent that the Agreement | |
| contains provisions that | |
| are inconsistent with the following, such provisions are hereby amended: | |
| a. | To the extent that the provision of this Agreement regarding termination are |
| inconsistent with requirements of the Wisconsin Fair Dealership Law (which, | |
| among other things, grants Developer the right, in most circumstances to 90 days | |
| prior written notice of termination and 60 days within which to remedy any claimed | |
| deficiencies), said termination provisions will be superseded by the requirements | |
| of the Wisconsin Fair Dealership Law and will have no force or effect. | |
| b. | If the Agreement requires that it be governed by a state's law, other than the State |
| of Wisconsin, to the extent that any provision of the Agreement conflicts with the | |
| Wisconsin Fair Dealership Law such provision shall be supersede by the law's | |
| requirement. | |
| 2. requirements are not met. | Each provision of this Amendment shall be effective only to the extent that the jurisdictional requirements of the Wisconsin law applicable to the provision are met independent of this Amendment. This Amendment shall have no force or effect if such jurisdictional |
Source: Item 23 — RECEIPTS (FDD pages 60–269)
What This Means (2024 FDD)
According to Cinch I.T.'s 2024 Franchise Disclosure Document, the Wisconsin amendment to the franchise agreement is applicable only to the extent that the jurisdictional requirements of Wisconsin law are met. This means that the amendment's effectiveness is limited to situations where Wisconsin law has jurisdiction, independent of the amendment itself. If the jurisdictional requirements are not met, the amendment has no force or effect.
Specifically, the amendment ensures that certain provisions within the Cinch I.T. franchise documents align with the Wisconsin Fair Dealership Law, Wisconsin Statutes, Chapter 135. These provisions primarily concern renewal and termination rights, granting the franchisee certain protections such as a 90-day prior written notice of termination and 60 days to remedy any claimed deficiencies. Additionally, if the franchise agreement stipulates that it is governed by the laws of a state other than Wisconsin, the Wisconsin Fair Dealership Law will supersede any conflicting provisions.
In practical terms, a Cinch I.T. franchisee in Wisconsin benefits from the protections afforded by the Wisconsin Fair Dealership Law, regardless of what the standard franchise agreement might state. However, this protection is contingent on Wisconsin having jurisdiction over the franchise relationship. A prospective franchisee should seek legal counsel to fully understand the circumstances under which Wisconsin law would apply and the specific rights they would have under the Wisconsin Fair Dealership Law.