Wisconsin Franchise Laws
How to Find State Specific Franchise Laws for Wisconsin
In a franchise arrangement, a franchisee gets to use a franchisor's trademark and method of doing business in return for a fee. The FTC's Franchise Rule provides some legal protection to those in such arrangements. There are also state-level laws for franchise companies in states such as Wisconsin.
In Wisconsin, companies offering franchise opportunities should register with the Wisconsin Securities Commission's Franchise Office. If a company is offering a legitimate franchise opportunity in Wisconsin, it should be registered with this state office.
In Wisconsin, a franchisor cannot terminate a franchise relationship without good cause. Wisconsin law bars franchise arrangement terminations that are not made in good faith. For instance, if a franchisee engages in criminal conduct or repeatedly breaks the provisions of the franchise agreement, that would be a good basis to terminate the franchise arrangement.
Wisconsin franchise laws also prohibit franchisors from demanding that franchisees sign agreements that are significantly different, without a reasonable basis, when they renew their franchise arrangement. Specifically, the Wisconsin law states that the franchise agreement should not "substantially change the competitive circumstances of a dealership agreement without good cause."