In the event of a conflict of laws, which law prevails in Wisconsin regarding the Ledgers franchise?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
The State of Wisconsin has a statute, the Wisconsin Franchise Investment Law, Wis. 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. the event of a conflict of laws, the provisions of the Wisconsin Franchise Investment Law, Wis§ 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
- 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 cause.
FDD: Item 17
FA: Section 8
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to the 2025 Ledgers Franchise Disclosure Document, the Wisconsin Franchise Investment Law and related administrative codes take precedence over the standard franchise agreement in the event of any conflict. Specifically, the provisions of the Wisconsin Franchise Investment Law, Wis§ 553.01, et. seq., and Wis. Adm. Code Chapter DFI-Sec. 31.01, et seq., shall prevail. This means that certain aspects of the franchise relationship, particularly those concerning termination and renewal, are governed by Wisconsin state law rather than the terms outlined in the Ledgers franchise agreement.
This protection extends to allowing a Ledgers franchisee to file a civil lawsuit in Wisconsin for claims arising under the Wisconsin Franchise Investment Law, even if the standard franchise agreement requires lawsuits to be filed in another state. Furthermore, Ledgers cannot terminate, cancel, fail to renew, or substantially change the competitive circumstances of the franchise agreement without good cause, as prohibited by the Wisconsin Fair Dealership Law, § 135.04.
For a prospective Ledgers franchisee in Wisconsin, this addendum provides significant legal protection. It ensures that the franchisee's rights under Wisconsin law are upheld, even if they differ from the standard terms of the franchise agreement. This includes the right to resolve disputes in Wisconsin courts and protection against termination or non-renewal without proper cause. Additionally, Ledgers must provide ninety (90) days written notice of a proposed termination and give the franchisee sixty (60) days to rectify any claimed deficiency, except in cases of insolvency or bankruptcy, where the notice provisions do not apply.