How does the Wisconsin Fair Dealership Law affect the Punch King Fitness Franchise Agreement?
Punch_King_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
THE WISCONSIN FAIR DEALERSHIP LAW SUPERSEDES ANY PROVISION OF THE FRANCHISE AGREEMENT THAT IS INCONSISTENT WITH THAT LAW. THE STATE OF WISCONSIN MAY ALSO HAVE COURT DECISIONS, WHICH MAY SUPERSEDE THE FRANCHISE RELATIONSHIP IN RELATIONSHIP WITH THE FRANCHISOR, INCLUDING THE AREAS OF TERMINATION AND RENEWAL OF YOUR FRANCHISE. THE STATE OF WISCONSIN MAY HAVE COURT DECISIONS, WHICH RESTRICT THE IMPOSITION OF LIQUIDATED DAMAGES. THE IMPOSITION OF LIQUIDATED DAMAGES IS ALSO RESTRICTED BY FAIR PRACTICE LAWS, CONTRACT LAW, AND STATE AND FEDERAL COURT DECISIONS. A PROVISION IN THE FRANCHISE AGREEMENT, WHICH TERMINATED THE FRANCHISE UPON THE BANKRUPTCY OF THE FRANCHISEE, MAY NOT BE ENFORCEABLE UNDER TITLE 11, UNITED STATES CODE §101. THE STATE OF WISCONSIN MAY HAVE COURT DECISIONS LIMITING THE FRANCHISOR'S ABILITY TO RESTRICT YOUR ACTIVITY AFTER THE FRANCHISE AGREEMENT HAS ENDED.
To the extent, this addendum is inconsistent with any terms or conditions of the franchise disclosure document, the Franchise Agreement, or any of their exhibits or attachments, the terms of this Addendum control.
Source: Item 22 — CONTRACTS (FDD pages 56–215)
What This Means (2024 FDD)
According to the 2024 Punch King Fitness Franchise Disclosure Document, the Wisconsin Fair Dealership Law has specific implications for franchisees operating in Wisconsin. To ensure compliance with Wisconsin law, Punch King Fitness includes a Wisconsin addendum to both the Franchise Disclosure Document and the Franchise Agreement.
The Wisconsin Fair Dealership Law supersedes any conflicting provisions within the standard Punch King Fitness Franchise Agreement. This means that if any part of the agreement clashes with the protections or requirements of the Wisconsin Fair Dealership Law, the state law takes precedence. Additionally, Wisconsin court decisions may further modify the franchise relationship, particularly concerning termination and renewal rights, and may restrict the imposition of liquidated damages. Provisions that automatically terminate the franchise upon the franchisee's bankruptcy may also be unenforceable under federal law.
The Wisconsin addendum to the franchise agreement explicitly states that Chapter 135 of the Wisconsin Statutes, which constitutes the Fair Dealership Law, overrides any inconsistent terms in the franchise agreement. Each provision within the addendum is effective only to the extent that it independently meets the jurisdictional requirements of the Wisconsin Fair Dealership Law. In case of any inconsistencies between the addendum and the franchise agreement, the terms of the addendum will govern, while all other aspects of the franchise agreement remain in effect.