Wisconsin Franchise Investment Law

Wisconsin`s Franchise Investment Act states that a franchise is a type of business agreement in which a person (the franchisee) acquires the right to sell or market a product or service under a particular plan to the person or organization offering that right to sale (the franchisor). To be a franchise, the arrangement must include three elements: To learn more about how we can help you with your franchise registrations and grow your franchise in Wisconsin and the United States, contact us at (800) 976-4904 or contact us. If a business wishes to sell franchises in Wisconsin, the business or franchisor must register the franchise with the DFI. As part of the registration, franchisors must provide the DFI with a copy of the disclosure document, which will be made available to all potential buyers. The disclosure document must contain in writing all relevant information about the franchisor and its activities. While a franchisor may advertise or make offers prior to franchise registration, the franchise must register to sell a franchise. The DFI may suspend or revoke the registration of a franchise for a person acting on behalf of the franchise for many reasons, including oral or written false statements, non-disclosure of convictions or civil judgments against the franchise representative, or failure to issue the appropriate filing fee. Any franchisor or its agent who violates wisconsin`s Franchise Investment Act may be held liable to the franchisee and may also be subject to investigation or criminal penalties. Franchise Relations Law in Wisconsin. Wisconsin fair dealership law applies to most franchises.

Wisconsin Statutes Section 135.02 (3) (a). Please see important information about U.S. federal and state franchise laws here. The Franchise Investment Act of Wisconsin, Wisconsin. Stat. Chapter 553 governs all franchise business opportunities in the State of Wisconsin. Unfortunately, most manufacturers, distributors, licensors and licensees don`t realize that the law regulates more than McDonald`s®, Burger King® and Dairy Queen®. Wisconsin`s Franchise Investment Act and the franchise laws of most other states do not use the term “franchise” in a way consistent with the meaning that most ordinary people or businesses associate with it. Wisconsin`s Franchise Investment Act governs more business opportunities beyond the national franchises we typically think of when we hear the word “franchise.” As a result, many manufacturers and suppliers mistakenly believe that they are not subject to Wisconsin`s Franchise Investment Act. The application for franchise registration must be submitted online through the department`s e-filing portal and include the following: Like many other states, Wisconsin has a broad definition of what constitutes a franchise.

Under Wisconsin law, a “franchise” exists if the company includes: (a) a joint marketing plan that is required or proposed by the alleged franchisor; (b) the licence or association with a trademark or other trade symbol; and (c) the payment of a fee. Axley Brynelson Law Firm`s distribution and franchise team has extensive experience representing franchisors and franchisees in all aspects of Wisconsin franchise investment law, including drafting disclosure documents, registering with DFI, regulatory compliance matters, drafting franchise agreements, FDHA enforcement measures and franchise terminations. Errors in the registration or operation of a franchise can make a franchisor liable under civil law. As a result, many franchisors find it beneficial to consult a franchise-focused legal team for registration advice or strategic decisions. Registration for the exemption of business opportunities in Wisconsin. Wisconsin franchises do not require state registration for business opportunities. Visit our interactive franchise registration card and learn about state franchise laws, FDD registration states, and required franchise registrations. The state legislature has implemented the Wisconsin Franchise Investment Act and related regulations to protect potential franchisors and ensure they have complete and accurate information so they can make an informed decision before investing in a franchise. Franchisors should be aware of these Wisconsin franchise laws and registration regulations in order to better protect the interests of their brand.

Call now to make an appointment for a consultation. Disclosure of the franchise in Wisconsin. Wisconsin`s Franchise Investment Act requires disclosures for potential franchisees prior to sale, similar to the requirements of the FTC`s franchise rule. Section 553.27(4) of the laws of Wisconsin. There are many surprising examples from Wisconsin and other states enforcing their franchise investment laws to unsuspecting businesses such as wine merchants, recycling machines, hardware and software resellers, as well as sales consultants who sell credit services to potential borrowers. For example, the Department of Financial Institutions (DFI) concluded in an enforcement action that the SoccerTots, Inc. license agreement was a franchise sold in violation of Wisconsin`s franchise law. .

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