What state's laws does the Dryject franchise agreement originally require to be applied?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
In recognition of the Wisconsin Fair Dealership Law, Wisconsin Statutes, §§ 135.01 -135.07, the parties to the attached DRYJECT MANAGEMENT, LLC Franchise Agreement (the "Agreement") agree as follows:
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- Section 6 of the Agreement, under the heading "RENEWAL", shall be supplemented by the addition of a new final paragraph as follows:
- "To the extent that the provisions of § 6. regarding renewal are inconsistent with the requirements of the Wisconsin Fair Dealership Law (which, among other things, grants Franchise Owner the right, in most circumstances, to 90 days prior written notice to termination and 60 days within which to remedy any claims deficiencies), said renewal provision will be superseded by the requirement of the Wisconsin Fair Dealership Law and will have no force or effect."
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- Section 32 of the Agreement under the heading "TERMINATION OF FRANCHISE", shall be supplemented by the following new subparagraph 32 (h). entitled "Termination Rights under Wisconsin Law":
"To the extent that the provision of §32 regarding termination are inconsistent with requirements of the Wisconsin Fair Dealership Law (which, among other things, grants Franchise Owner 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notice of termination and 60 days within which to remedy any claimed deficiencies), said termination provisions will be superseded by the requirements of the Wisconsin Fair Dealership Law and will have no force or effect."
Source: Item 8 — BUSINESS RELATIONSHIP (FDD pages 68–229)
What This Means (2025 FDD)
According to the 2025 Dryject FDD, the franchise agreement is initially written to comply with Wisconsin law. Several addenda and exhibits specifically address how the agreement is modified to comply with the Wisconsin Fair Dealership Law. These modifications primarily concern the franchisee's rights regarding termination and renewal of the franchise agreement, ensuring that the provisions of the agreement do not conflict with Wisconsin law. The FDD includes an addendum specifically for use in the State of Wisconsin, further emphasizing the importance of Wisconsin law in the franchise relationship.
For a prospective Dryject franchisee, this means that the initial franchise agreement is drafted with Wisconsin law in mind. If the franchisee is operating in Wisconsin, certain provisions of the agreement are automatically superseded by the Wisconsin Fair Dealership Law, particularly those related to termination, renewal, and repurchase of inventory. This law provides franchisees with certain protections, such as requiring 90 days' prior written notice of termination and 60 days to remedy any claimed deficiencies.
However, the FDD also includes specific state riders and addenda for other states like California, Maryland, and Minnesota, which modify the agreement to comply with those states' laws. This indicates that while the base agreement may be rooted in Wisconsin law, it is adaptable to the legal requirements of other states where Dryject franchises operate. Franchisees operating outside of Wisconsin should pay close attention to any state-specific addenda or riders included in their franchise agreement to understand how the agreement is modified to comply with their local laws.
It is important for prospective franchisees to carefully review the entire franchise agreement, including all addenda and riders, to fully understand their rights and obligations under the agreement and applicable state laws. Consulting with an attorney experienced in franchise law is highly recommended to ensure a thorough understanding of the legal implications of the franchise agreement.