Wisconsin regulates franchising through its Fair Dealership Law, which covers not only franchises but also other types of dealership agreements.
Here are the key aspects related to Wisconsin franchise laws:
- Fair Dealership Law: Wisconsin does not have specific franchise laws but instead enforces its Fair Dealership Law, which applies to franchise agreements, distributorships, and other similar arrangements.
- Definition of a Dealer: The Fair Dealership Law defines dealers broadly to include individuals or entities engaged in selling or distributing goods or services under a contract with a grantor (which could be a manufacturer, wholesaler, or franchisor).
- Good Faith and Fair Dealing: The law requires that the parties involved in the dealership agreement deal with each other in good faith. It prohibits unfair termination, cancellation, or non-renewal of dealership agreements without good cause or proper notice.
- Termination and Non-Renewal: Wisconsin law requires a grantor to provide a reasonable notice period and good cause for termination or non-renewal of a dealership agreement. The specifics of notice periods and what constitutes “good cause” can vary depending on the circumstances and the agreement.
- Protections for Dealers: The Fair Dealership Law aims to protect dealers from arbitrary or unfair actions by the grantor. It provides legal remedies for dealers who believe they have been treated unfairly or had their dealership agreement terminated or not renewed without proper cause.
- Legal Recourse: Dealers who feel they have been unjustly treated under the Fair Dealership Law have the right to pursue legal action to seek remedies, which might include damages or injunctive relief.
As Wisconsin’s regulations for franchising fall under its Fair Dealership Law, individuals involved in franchising or dealership agreements within the state should seek legal advice from attorneys experienced in dealership and franchise laws. Understanding the nuances and specific requirements of the law can help both franchisors and franchisees ensure compliance and protect their rights under Wisconsin’s legal framework.
Wisconsin Franchise Office
Wisconsin Securities Commission
Wisconsin Department of Financial Institutions
4822 Madison Yards Way, North Tower
Madison, WI 53705
(608) 266-0448