What is the required action of Ledgers if a franchisee rectifies a deficiency within the allotted time 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 the 2025 Ledgers Franchise Disclosure Document, Wisconsin state law modifies the standard termination procedures outlined in the franchise agreement. Specifically, Ledgers must provide a Wisconsin franchisee with ninety days written notice of a proposed termination, detailing the reasons for termination, cancellation, non-renewal, or substantial change in circumstances. The franchisee then has sixty days from the date of the notice to rectify any claimed deficiency.
If the Wisconsin franchisee successfully rectifies the deficiency within this sixty-day period, the termination notice becomes void, meaning Ledgers cannot proceed with terminating the agreement based on that particular deficiency. This provides significant protection to franchisees in Wisconsin, ensuring they have a fair opportunity to correct any issues before Ledgers can terminate the franchise agreement.
However, there are exceptions to this rule. The notice provisions do not apply if the reason for termination, cancellation, or non-renewal is due to insolvency, assignment for the benefit of creditors, or bankruptcy. Additionally, if the termination is due to nonpayment of sums owed under the Franchise Agreement, the franchisee still receives ninety days written notice but only has ten days to remedy the default.