What Is It?
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A Brief History
Regulation Overview
Regulation in Wisconsin
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Wisconsin
State Information
- CONTACT US:
- Administrator:
Department of Financial Institutions
Division of Securities
- U.S. Mail Service:
P. O. Box 1768
Madison, WI 53701-1768
- Courier Service:
345 W. Washington Avenue, 4th Floor
Madison, WI 53703
- Telephone: (608) 266-8557
- Fax: (608) 264-7979
- Website: http://www.wdfi.org
- STATUTE, ADMINISTRATIVE RULES, and POLICIES:
- The Law and Rules: Chapter
553 of the Wisconsin Statutes, The Wisconsin Franchise Investment
Law and Chapters
DFI-Sec 31 - 36, inclusive, of the Wisconsin Administrative
Code. Copies are available from the Administrator for $8.00 (per
set).
- Statement of Policy: Guidelines
for Preparation of a Uniform Franchise Offering Circular are
available. The Guidelines provide a detailed analysis of the Uniform
Circular's format and disclosure requirements, including sample
language. Copies are available from the Administrator for $20.
- REGISTRATION REQUIREMENT:
- When to file: Not later than date of first franchise sale.
- Franchise Systems: Separate application and fee required
for each franchise system to be sold.
- Documents to be filed and number of copies of each:
- Franchise Offering Circular prepared on the basis of the Guidelines
for Preparation of a Uniform Franchise Offering Circular as
adopted by the North American Securities Administrators Association
in April 1980, as amended October, 1988 and April 1993 or under
the FTC Rule...... 1 COPY
- Uniform Franchise Registration Application Cover Page......
1 COPY
- Uniform Consent to Service of Process and Corporate Acknowledgment......
1 COPY
- Advertising: No filing required.
- Filing Fee: Registration Application: Sec. 553.72, Wis.
Stats......$400
- Review Time: Sec. 553.26(3), Wis. Stats. Effective on date
of receipt.
- Registration Period: Sec. 553.26(3), Wis. Stats. One Year
from effective date of registration.
- AMENDMENT REQUIREMENTS:
- Filing Requirement: Registrant must file an application
to amend the registration within 30 days of the occurrence of a
material event (sec. 553.31, Wis. Stats., and DFI-Sec 32.07, Wis.
Adm. Code). Some, but not all, material events are described in
DFI-Sec 31.01(2), Wis. Adm. Code.
- Form: Same as that for Registrations, i.e., Uniform Franchise
Registration Application Cover Page and Franchise Offering Circular.
One copy only of each change is required to be filed.
- Filing Fee: DFI-Sec 32.07(1) and 35.01(1)(d), Wis. Adm.
Code - $200.00 fee.
- Review Time: Effective on date of receipt.
Note: Significant changes to the Wisconsin Franchise Investment
Law were made effective July 1, 1996. Although the legislation in
its form as originally introduced would have repealed s. 553.31
which requires a registrant to file material amendments to the UFOC,
Assembly Amendment #4 was adopted during the legislative process
which specifically deleted the proposed repeal of that section.
Consequently, registrants under the revised law will continue to
be required to file material amendments to the UFOC, notwithstanding
inconsistent language in the first sentence of s. 553.26(4m)
(which should have been deleted as part of Assembly Amendment #4,
but was not).
- RENEWAL:
- No procedure available. None provided by statute. Registration
application must be filed if existing registration has expired and
additional franchise sales are to be made.
- DISCLOSURE PRIOR TO SALE OF FRANCHISE:
- Advance Disclosure. Under Sec. 553.27(4), Wis. Stats. a
copy of the offering circular must be provided ten business days
prior to execution by the prospective franchisee of any binding
franchise or other agreement, or at least ten business days prior
to the receipt of any consideration, whichever first occurs.
- ESCROW OR IMPOUND PROVISIONS:
- May be required. See sec. 553.27(2), Wis. Stats., and DFI-Sec
32.08, Wis. Adm. Code.
- RELATED STATE LAWS:
- Chapter
135, Wis. Stats., The Wisconsin Fair Dealership Law and DFI-Sec
32.06(3), Wis. Adm. Code.
The Wisconsin Fair Dealership Law applies to most, if not all,
franchise agreements and prohibits the termination, cancellation,
non-renewal or the substantial change of the competitive circumstances
of a dealership agreement without good cause. That Law further provides
that 90 days prior written notice of a proposed termination, etc.
must be given to the dealer. The dealer has 60 days to cure the
deficiency and if the deficiency is cured, the notice is void. Section
17 of the Offering Circular and the corresponding section of the
franchise or license agreement should state that the Wisconsin Fair
Dealership Law supersedes any provisions contained in the franchise
or license agreement that are inconsistent with that Law.
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