What is the dependency between the notice of termination and the rectification of deficiency for Ledgers franchises in Wisconsin?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
- Item 17 of the Franchise Disclosure Document and Section 8 of the Franchise Agreement permit the Franchisor to terminate the Franchise Agreement without providing the Franchisee ninety (90) days prior notice of the proposed termination or sixty (60) days to cure the deficiency. 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 require that prior to the termination of the Franchise Agreement Franchisor must provide Franchisee ninety (90) days written notice of a proposed termination, which states all the reasons for the termination, cancellation, non-renewal or substantive change in circumstances, and the Franchisee shall be given sixty (60) days from the date of delivery or posting of such notice to rectify any claimed deficiency. If the deficiency is rectified within the sixty (60) days the notice shall be void. The notice provisions shall not apply if the reason for termination, cancellation or non-renewal is insolvency, the occurrence of an assignment for the benefit of creditors or bankruptcy. If the reason for termination, cancellation
or non-renewal or substantial change in competitive circumstances is nonpayment of sums due under the Franchise Agreement, Franchisee shall still be entitled to (90) days written notice, as referenced above, however, Franchisee shall only have ten (10) days in which to remedy such default from the date of delivery or post of such notice.
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to Ledgers's 2025 Franchise Disclosure Document, Wisconsin state law affects the termination process for franchises operating in that state. Specifically, Item 17 of the Franchise Disclosure Document and Section 8 of the Franchise Agreement are amended to comply with the Wisconsin Fair Dealership Law.
For Ledgers franchises in Wisconsin, prior to termination, Ledgers must provide the franchisee with a 90-day written notice stating all reasons for the proposed termination, cancellation, non-renewal, or substantive change. The franchisee then has 60 days from the date of the notice to rectify any claimed deficiency. If the franchisee successfully rectifies the deficiency within this 60-day period, the termination notice becomes void.
However, this notice and cure period does not apply if the termination is due to insolvency, assignment for the benefit of creditors, or bankruptcy. If the termination is due to nonpayment of sums owed under the Franchise Agreement, the franchisee is still entitled to the 90-day written notice, but the period to remedy the default is reduced to 10 days from the date of the notice.