What Wisconsin Administrative Code chapter may supersede the Ledgers Franchise Agreement?

According to Ledgers' 2025 Franchise Disclosure Document, Wisconsin Administrative Code Chapter DFI-Sec. 31.01, et seq. may supersede the Ledgers Franchise Agreement. This means that certain provisions of the franchise agreement, particularly those related to termination and renewal, might be overridden by Wisconsin state law. The Wisconsin Franchise Investment Law, Wis. 553.01, et. seq., may also supersede the Franchise Agreement.

This is a significant consideration for prospective franchisees in Wisconsin. It means that the standard terms of the Ledgers Franchise Agreement are not necessarily the final word, and the franchisee may have additional rights and protections under Wisconsin law. This could impact the franchisee's ability to renew the franchise agreement or the circumstances under which Ledgers can terminate the agreement.

Specifically, the FDD notes that Item 17 of the Franchise Disclosure Document and Section 8 of the Franchise Agreement permit Ledgers to terminate, cancel, not renew, or make a substantial change in competitive circumstances in the Franchise Agreement, without cause under certain circumstances. However, these provisions are prohibited by the Wisconsin Fair Dealership Law, § 135.04. As a result, Item 17 of the Franchise Disclosure Document and Section 8 of the Franchise Agreement are amended to prevent such actions without good cause.

Therefore, prospective Ledgers franchisees in Wisconsin should carefully review both the Franchise Agreement and the relevant Wisconsin state laws to fully understand their rights and obligations. Consulting with legal counsel is highly recommended to ensure a complete understanding of how these laws may affect their franchise relationship.