If the reason for termination of a Ledgers franchise in Wisconsin is nonpayment, how many days does the franchisee have to remedy the nonpayment?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
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 the 2025 Ledgers Franchise Disclosure Document, a Wisconsin franchisee facing termination due to nonpayment has a specific timeframe to remedy the default. While the standard cure period is sixty days, nonpayment defaults are treated differently under the Wisconsin State Addendum.
Specifically, if the termination is due to nonpayment of sums owed under the Franchise Agreement, the franchisee is entitled to ninety days written notice of the proposed termination. However, the franchisee only has ten days from the date of delivery or posting of such notice to correct the payment default.
This shorter cure period for nonpayment is a critical point for prospective Ledgers franchisees in Wisconsin. It means that financial issues must be addressed swiftly to avoid termination, compared to other types of defaults where a longer cure period applies. Franchisees should ensure they have robust financial management systems in place to monitor and address any payment issues promptly.