Does the Wisconsin Fair Dealership Law apply to all Deka Lash franchise agreements in Wisconsin?
Deka_Lash Franchise · 2024 FDDAnswer from 2024 FDD Document
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- Item 17 is modified to also provide,
If the franchise agreement contains any provisions that conflict with the Wisconsin Fair Dealership Law, the provisions of this Addendum shall prevail to the extent of such conflict.
With respect to franchises governed by Wisconsin law, the Wisconsin Fair Dealership Law applies to most, if not all, franchise agreements and prohibits the termination, cancellation, non-renewal or the substantial change of the competitive circumstances of a dealership agreement without good cause. That Law further provides that 90 days prior written notice of a proposed termination, etc. must be given to the dealer. The dealer has 60 days to cure the deficiency and if the deficiency is cured, the notice is void.
Source: Item 23 — RECEIPT (FDD pages 63–234)
What This Means (2024 FDD)
According to the 2024 Deka Lash Franchise Disclosure Document, the Wisconsin Fair Dealership Law applies to most, if not all, franchise agreements governed by Wisconsin law. This law aims to protect dealers (franchisees) from unfair treatment by franchisors, specifically regarding termination, cancellation, non-renewal, or substantial changes to the competitive circumstances of the dealership agreement.
For a Deka Lash franchisee in Wisconsin, this means that Deka Lash cannot terminate, cancel, or choose not to renew the franchise agreement without "good cause." Furthermore, Deka Lash must provide the franchisee with a 90-day prior written notice of any proposed termination or significant change. This notice period allows the franchisee 60 days to address and cure any deficiencies that led to the termination notice. If the franchisee successfully cures the deficiency within this timeframe, the termination notice becomes void.
This protection is further reinforced by an addendum to the franchise agreement, which states that if any provision in the franchise agreement conflicts with the Wisconsin Fair Dealership Law, the provisions of the addendum will take precedence to the extent of the conflict. This ensures that the franchisee's rights under Wisconsin law are upheld, even if the standard franchise agreement contains conflicting terms. This addendum also applies to the Area Development Agreement.
Prospective Deka Lash franchisees in Wisconsin should carefully review the Wisconsin Fair Dealership Law and the addendum to the franchise agreement to fully understand their rights and obligations. They should also consult with a legal professional to ensure they are aware of all the implications of this law on their franchise agreement.