What specific sections of the Ledgers Franchise Disclosure Document and Franchise Agreement are amended regarding termination 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 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
- 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, Item 17 of the Franchise Disclosure Document and Section 8 of the Franchise Agreement are amended with respect to termination in Wisconsin. These amendments address specific provisions that conflict with the Wisconsin Fair Dealership Law.
Specifically, the FDD and Franchise Agreement are amended to prevent Ledgers from terminating, canceling, not renewing, or making substantial changes in competitive circumstances without good cause, as the original provisions allowing such actions without cause are prohibited under Wisconsin law.
Furthermore, the FDD and Franchise Agreement are amended to require Ledgers to provide a franchisee with ninety days' written notice of a proposed termination, which states all the reasons for the termination, cancellation, non-renewal, or substantive change in circumstances. The franchisee is then given sixty days from the date of delivery or posting of such notice to rectify any claimed deficiency. However, if the reason for termination is nonpayment of sums due under the Franchise Agreement, the franchisee only has ten days to remedy the default after receiving the ninety-day notice. These notice provisions do not apply if the reason for termination is insolvency, assignment for the benefit of creditors, or bankruptcy.