What information must be included in the written notice of proposed termination from Ledgers to a franchisee 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, Item 17 and Section 8 of the Franchise Agreement are amended to comply with Wisconsin Fair Dealership Law. This law impacts the termination process for franchisees in Wisconsin.
Specifically, Ledgers must provide a Wisconsin franchisee with ninety (90) days written notice of a proposed termination. This notice must include all the reasons for the termination, cancellation, non-renewal, or any substantial changes in circumstances that lead to the proposed termination.
The franchisee then has sixty (60) days from the date they receive the notice to fix, or rectify, the issues that Ledgers has identified. If the franchisee successfully addresses these deficiencies within the 60-day period, the termination notice becomes void. However, if the termination is due to nonpayment of sums due under the Franchise Agreement, the franchisee only has ten (10) days to remedy the default, although they are still entitled to the 90-day written notice.