Wisconsin
Franchise Registration
Wisconsin
Wisconsin is a franchise registration state. Franchisors must register their Franchise Disclosure Document (FDD) with the Wisconsin Department of Financial Institutions (DFI) before completing a franchise sale in Wisconsin unless an exemption applies. Wisconsin also regulates many franchise relationships under the Wisconsin Fair Dealership Law.
The Wisconsin Franchise Investment Law defines a franchise as an agreement under which the franchisee receives the right to offer, sell, or distribute goods or services under a marketing plan or system prescribed or suggested in substantial part by the franchisor; the franchisee’s business is substantially associated with the franchisor’s trademark or other commercial symbol; and the franchisee must pay a direct or indirect franchise fee. (Wis. Stat. § 553.03)
Franchisors must also comply with the Federal Trade Commission’s (FTC) Franchise Rule, which requires providing a current FDD to prospective franchisees at least 14 calendar days before execution of any agreement or payment of any consideration.
Wisconsin Franchise Registration
A franchisor must register no later than the date of its first franchise sale in Wisconsin. All filings must be submitted electronically with the DFI and include basic information about the franchisor and its filing and service-of-process contacts, a complete FDD with all exhibits uploaded as one PDF, and a $400 registration fee.
Wisconsin is not a merit-review state. A registration becomes effective upon receipt and remains effective for 1 year. The DFI may require escrow or impoundment of initial franchise fees if the franchisor’s financial condition raises concerns about its ability to perform its preopening obligations. (Wis. Stat. §§ 553.21, 553.26, and 553.27)
A franchisor must amend its registration within 30 days after a material change, such as a change in control, an adverse financial development, or a significant modification of the franchise system. The amendment fee is $200, and an amendment is effective upon receipt for the balance of the existing registration period. (Wis. Stat. § 553.31; Wis. Admin. Code DFI-Sec §§ 31.01 and 32.07)
Wisconsin does not provide a renewal procedure. Instead, a franchisor must submit a new registration each year with a new $400 fee. A gap between registrations is permitted, but the franchisor may not complete any Wisconsin franchise sales while unregistered.
Wisconsin Franchise Relationship and Termination Laws
The Wisconsin Fair Dealership Law applies when a franchise relationship qualifies as a “dealership,” including when the parties share a community of interest in the marketing of goods or services.
A grantor may not terminate, cancel, fail to renew, or substantially change the competitive circumstances of a dealership without good cause, which generally means the dealer’s failure to substantially comply with essential and reasonable requirements imposed on similarly situated dealers, or bad faith by the dealer.
The grantor generally must provide at least 90 days’ written notice stating the reasons for the proposed action and allow 60 days to cure (10 days if the default is nonpayment). Notice and cure are not required in certain circumstances, including insolvency, an assignment for the benefit of creditors, or bankruptcy. Contract provisions that conflict with the Wisconsin Fair Dealership Law may be unenforceable. (Wis. Stat. §§ 135.03 and 135.04)
Wisconsin Business Opportunity Laws
Wisconsin does not have a separate business opportunity registration statute. However, Wisconsin’s franchise definition is broad, and a business opportunity arrangement may be regulated under the Wisconsin Franchise Investment Law if it includes the marketing-plan, trademark-association, and franchise-fee elements.
More Information About Wisconsin's Franchise Laws
For more information, please visit:
Wisconsin Department of Financial Institutions – Franchising
Wisconsin Franchise Frequently Asked Questions
Wisconsin Franchise Investment Law
Wisconsin Fair Dealership Law
Franchise Compliance in Wisconsin
To learn more about our franchise services and how we can assist with franchise compliance in Wisconsin, please contact us at (757) 263-4596 or visit our interactive map to explore franchise laws in other states.
