In the event of a conflict of laws, which law prevails for Cr3 American Exteriors franchises?
Cr3_American_Exteriors Franchise · 2025 FDDAnswer from 2025 FDD Document
WISCONSIN
The State of Wisconsin has a statute, the Wisconsin Franchise Investment Law, Wis. Stat. § 553.01, et. seq., and Wis. Adm. Code Chapter DFI-Sec. 31.01, et seq., which may supersede the Franchise Agreement in your relationship with the franchisor including the areas of termination and renewal of your franchise. There may also be court decisions which may supersede the Franchise Agreement in your relationship with the franchisor including the areas of termination and renewal of your franchise.
In the event of a conflict of laws, the provisions of the Wisconsin Franchise Investment Law, Wis. Stat. § 553.01, et. seq., and Wis. Adm. Code Chapter DFI-Sec. 31.01, et seq., shall prevail.
- The Franchise Disclosure Document and Franchise Agreement require a Franchisee to sue in a State other than Wisconsin and are hereby amended to expressly permit a Franchisee to file a civil lawsuit in Wisconsin for claims arising under the Wisconsin Franchise Investment Law.
FDD: Item 17
FA: Section 9.10
- Item 17 of the Franchise Disclosure Document and Section 8 of the Franchise Agreement permit Franchisor to terminate, cancel, not renew, or make a substantial change in competitive circumstances in the Franchise Agreement, without cause under certain circumstances. These provisions are prohibited by the Wisconsin Fair Dealership Law, § 135.04. Accordingly, Item 17 of the Franchise Disclosure Document and Section 8 of the Franchise Agreement are hereby amended to prevent the termination, cancellation, non-renewal, or substantial change in competitive circumstances of the Franchise Agreement without good ca
Source: Item 23 — RECEIPTS (FDD pages 53–150)
What This Means (2025 FDD)
According to Cr3 American Exteriors's 2025 Franchise Disclosure Document, the Wisconsin Franchise Investment Law will prevail in the event of a conflict of laws for franchises operating in Wisconsin. Specifically, this refers to Wis. Stat. § 553.01, et. seq., and Wis. Adm. Code Chapter DFI-Sec. 31.01, et seq. This law may supersede the standard Franchise Agreement in areas such as termination and renewal. Court decisions may also supersede the Franchise Agreement in these areas.
This means that if any part of the standard Cr3 American Exteriors franchise agreement clashes with the Wisconsin Franchise Investment Law, the provisions of the Wisconsin law will take precedence. This is a significant protection for franchisees in Wisconsin, as it ensures that their rights under state law are upheld, even if the franchise agreement attempts to limit those rights.
Furthermore, the FDD clarifies that despite any clauses in the standard agreement that might require a franchisee to sue outside of Wisconsin, a Cr3 American Exteriors franchisee can file a civil lawsuit in Wisconsin for claims arising under the Wisconsin Franchise Investment Law. Also, Cr3 American Exteriors cannot terminate, cancel, not renew, or make a substantial change in competitive circumstances in the Franchise Agreement, without cause under certain circumstances, as these provisions are prohibited by the Wisconsin Fair Dealership Law, § 135.04.