Wisconsin State Information

1. 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, 4^th Floor
     Madison, WI 53703
     
     
   • Telephone: (608) 266-8557
     
     
   • Fax: (608) 264-7979
     
     
   • Website: http://www.wdfi.org
     
     
2. 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.
     
     
3. 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.
     
     
4. 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).
     
     
5. 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.
     
     
6. 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.
     
     
7. ESCROW OR IMPOUND PROVISIONS:
   
   
   • May be required. See sec. 553.27(2), Wis. Stats., and DFI-Sec 32.08, Wis. Adm. Code.
     
     
8. 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.