How many days does a Ledgers franchisee in Wisconsin have to cure a deficiency after receiving a termination notice?
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' 2025 Franchise Disclosure Document, Wisconsin franchisees generally have 60 days to cure a deficiency after receiving a termination notice. However, if the termination is due to non-payment of sums owed under the Franchise Agreement, the franchisee only has 10 days to remedy the default.
This amendment is due to the Wisconsin Fair Dealership Law, which prohibits terminating a franchise agreement without good cause. The Ledgers Franchise Agreement is modified to comply with this law, ensuring Wisconsin franchisees receive proper notice and an opportunity to correct any deficiencies before termination.
It's important to note that these cure periods and notice requirements do not apply if the reason for termination is insolvency, assignment for the benefit of creditors, or bankruptcy. In those cases, Ledgers can terminate the agreement without providing the standard notice and cure period. This ensures Ledgers can act swiftly in cases of severe financial distress or legal proceedings against the franchisee.