What specific reasons for termination of a Ledgers franchise in Wisconsin waive the 90-day notice requirement?
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, the standard 90-day notice requirement for franchise termination in Wisconsin is waived under specific circumstances. Generally, Wisconsin law requires Ledgers to provide a franchisee with 90 days' written notice of termination, including the reasons for termination, and allows the franchisee 60 days to rectify any deficiencies.
However, this notice period is waived if the reason for termination is due to the franchisee's insolvency, an assignment for the benefit of creditors, or bankruptcy. In these specific cases, Ledgers can terminate the franchise agreement without providing the standard 90-day notice.
It's important to note that if the termination is due to nonpayment of sums owed to Ledgers under the Franchise Agreement, the franchisee is still entitled to the 90-day written notice. However, they only have ten days to remedy the default, a significantly shorter period than the standard 60 days provided for other types of deficiencies.