What is the role of the Wisconsin Franchise Investment Law in relation to the Ledgers Franchise Agreement?
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 may supersede the Ledgers Franchise Agreement in the franchisee's relationship with Ledgers. This includes areas related to the termination and renewal of the franchise. In the event of a conflict between the Franchise Agreement and the Wisconsin Franchise Investment Law, the provisions of the Wisconsin law will take precedence.
Specifically, the FDD states that if the Franchise Agreement requires a franchisee to sue in a state other than Wisconsin, this is amended to allow a franchisee to file a civil lawsuit in Wisconsin for claims arising under the Wisconsin Franchise Investment Law. This ensures that Wisconsin franchisees have the right to pursue legal claims related to their franchise within their own state, regardless of what the standard agreement might stipulate.
Furthermore, certain provisions in Item 17 of the Franchise Disclosure Document and Section 8 of the Franchise Agreement, which allow Ledgers to terminate, cancel, not renew, or make substantial changes in competitive circumstances without cause, are prohibited by the Wisconsin Fair Dealership Law. Therefore, these sections are amended to prevent such actions without good cause, providing additional protection to Ledgers franchisees in Wisconsin.