Wisconsin
Franchise Registration
Wisconsin
Wisconsin is a franchise registration and business opportunity law state.
Wisconsin defines a franchise as any “continuing commercial relationship or arrangement” where:
Wisconsin Franchise Registration Filings
Wisconsin is a franchise registration state that requires filing the Franchise Disclosure Document (“FDD”) with the state.
The initial filing fee is $400 and must be accompanied by the following documents:
Wisconsin Fee Deferral
South Dakota may require a fee deferral, which requires a deferment on the payment of initial franchise fees until the franchisor has completed its pre-opening obligations and is open for business. S.D. Codified Laws § 37-5B-5.
South Dakota does have a Surety bond and Escrow option. The Escrow option requires a bank with branches in South Dakota to serve as an Escrow Agent. The Escrow option requires both South Dakota and Franchisee Approval to release funds. S.D. Codified Laws § 37-5B-5.
Since South Dakota requires the franchisee to be open for business, the surety bond is a great option, especially where there is a buildout so the franchisor can receive the initial franchise fee without an extended delay.
However, a surety bond requires a franchisor to apply for the bond, go through underwriting, give a personal guarantee in some situations, and pay a premium of 1-3% of the bond amount normally.
The Fee Deferral requirement is generally an easier path with less state involvement, but it may not be suitable for everyone.
Wisconsin Franchise Renewals
Wisconsin registrations should be renewed 30 days before the one-year anniversary of the registration date.
The renewal filing fee is $400 and must be accompanied by the following documents:
There are no franchise laws that specifically govern the franchise relationship or termination of a franchisee in Wisconsin.
Wisconsin Business Opportunity Laws
Wisconsin also has Business Opportunity Laws, which define “business opportunity” as a contract or agreement, between a seller and purchaser, wherein it is agreed that the seller shall provide the purchaser any product, equipment, supplies or services and upon payment of an initial required consideration exceeding $500 for the purpose of enabling the purchaser to start a business, and in which the seller:
Wisconsin Business Opportunity Registration
The sale of business opportunities in Wisconsin requires a Written Disclosure Statement, surety bond or escrow account, and written agreement.
Wisconsin Franchise Exemption from Business Opportunity Laws
You can access the Business Opportunities Securities Regulation at this link: South Dakota Link
If you offer a business opportunity in Wisconsin, we can help you determine if, and how, your company must comply with Wisconsin’s Franchise or Business Opportunity Laws.
Wisconsin Business Opportunity Laws NO ACTIVE LINK
If you would like to learn more about our franchise services and franchise compliance in Wisconsin, contact us or call (757) 263-4596 to schedule a consultation. You can also visit our interactive map to explore franchise laws in other states.
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