What is the purpose of the amendment to the Cinch I.T. Franchise Agreement required by the State of Wisconsin?
Cinch_I_T Franchise · 2024 FDDAnswer from 2024 FDD Document
The Securities Commissioner of the State of Wisconsin requires that certain provisions contained in franchise documents be amended to be consistent with Wisconsin Fair Dealership Law, Wisconsin Statutes, Chapter 135 ("Fair Dealership Law"). To the extent that the Franchise Agreement contains provisions that are inconsistent with the following, such provisions are hereby amended:
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- Item 17, Renewal, Termination, Transfer and Dispute Resolution, shall be amended by the addition of the following paragraphs at the conclusion of the Item 17 disclosures:
- a. "To the extent that the provisions regarding renewal described in this section are inconsistent with the requirements of the Wisconsin Fair Dealership Law (which, among other things, grants You the right, in most circumstances, to 90 days prior written notice of termination and 60 days within which to remedy any claim deficiencies), the renewal provisions will be superseded by the requirements of the Wisconsin Fair Dealership Law and will have no force or effect."
- b. "To the extent that the provisions regarding termination described in this section are inconsistent with the requirements of the Wisconsin Fair Dealership Law (which, among other things, grants You the right, in most circumstances, to 90 days prior written notice to termination and 60 days within which to remedy any claim deficiencies), the termination provision will be superseded by the requirements of the Wisconsin Fair Dealership Law and will have no force or effect."
- c. "If the franchise 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 franchise agreement conflicts with the Wisconsin Fair Dealership Law such provision shall be supersede by the law's requirement."
Source: Item 23 — RECEIPTS (FDD pages 60–269)
What This Means (2024 FDD)
According to Cinch I.T.'s 2024 Franchise Disclosure Document, the amendment to the franchise agreement required by the Wisconsin Securities Commissioner ensures that certain provisions within Cinch I.T.'s franchise documents align with the Wisconsin Fair Dealership Law, specifically Chapter 135 of the Wisconsin Statutes. This law aims to protect franchisees, referred to as 'dealers' under Wisconsin law, from unfair treatment by franchisors.
The amendment primarily addresses inconsistencies related to renewal and termination clauses within the Cinch I.T. Franchise Agreement. The Wisconsin Fair Dealership Law mandates that franchisees, in most situations, are entitled to a 90-day prior written notice before termination and a 60-day window to rectify any claimed deficiencies. If the original Cinch I.T. franchise agreement has terms that conflict with these requirements, the amendment ensures that the state law supersedes those terms, thereby providing Wisconsin franchisees with the protections guaranteed by state law.
Furthermore, the amendment addresses potential conflicts of law. If the Cinch I.T. Franchise Agreement stipulates that it is governed by the laws of a state other than Wisconsin, the amendment clarifies that any provision conflicting with the Wisconsin Fair Dealership Law will be overridden by Wisconsin law. However, it's important to note that each provision of this amendment is effective only if the jurisdictional requirements of Wisconsin law are independently met, meaning the amendment's effect is contingent on the specific circumstances and applicability of Wisconsin law.