Wisconsin Franchise Law Overview
Wisconsin’s franchise regulatory structure is set out in the Wisconsin Franchise Investment Law (WFIL), which requires franchisors to register with the Department of Financial Institutions (DFI) before offering or selling a franchise in the state.
Note: I encourage you to hire Wisconsin Franchise Attorneys to help you with all your legal requirements.
Now, this is a registration state, meaning an application must be filed, typically including the Franchise Disclosure Document (FDD), which must comply with both state law and the Federal Trade Commission’s Franchise Rule.
The process generally operates on a notification basis, where registration is effective upon filing, but the DFI retains strong anti-fraud authority, including the power to require initial franchisee fees to be held in an escrow account.
The WFIL defines a franchise using a three-element test.
A business relationship qualifies as a franchise if the franchisee is granted the right to operate under a marketing plan prescribed or suggested by the franchisor; the franchisee’s operation is substantially associated with the franchisor’s trademark or commercial symbol; and the franchisee is required to pay, directly or indirectly, a franchise fee.
Furthermore, if a business opportunity meets all three criteria, it falls under the law’s protective requirements, though statutory exemptions can apply for certain transactions, such as those involving highly experienced franchisees or large initial investments.
Beyond the initial sale, the ongoing relationship is often protected by the powerful Wisconsin Fair Dealership Law (WFDL).
This law applies to many franchise agreements and provides significant security for the franchisee’s investment. Critically, it prevents a franchisor from terminating, canceling, or failing to renew a covered dealership without good cause.
Finally, the WFDL mandates that a franchisor must provide a specified written notice period, often 90 days, and allow the franchisee time to cure any alleged default. This severely restricts a franchisor’s ability to arbitrarily end the business relationship.
Here is a list of franchise lawyers you can hire in Wisconsin
PD Business Law
1424 North High Point Road
Middleton, Wisconsin
Stafford Rosenbaum LLP/Stafford Rosenbaum LLP
222 West Washington Avenue, Suite 900
Madison, Wisconsin
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Joel Libava, President.
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