What are the laws governing the sale of a franchise?

In Wisconsin, the laws governing the sale of a franchise are outlined in the Wisconsin Franchise Investment Law. This law requires a franchisor to provide a prospective franchisee with a disclosure document that contains certain information about the franchise. This includes details about the franchisor’s background, the costs associated with the franchise, a copy of the proposed contract, financial information, estimated income and other related documents. The law also requires the franchisor to provide the potential franchisee with a Franchise Disclosure Document at least 14 days before signing a contract. This document must include information on the business opportunity, the franchisor’s background, financial information, a sample of the proposed contract, estimated income and a list of any existing franchisees. The law also requires the franchisor to provide a potential franchisee with a right of rescission of 14 days after the contract is signed. This allows a potential franchisee to cancel the contract within 14 days if he/she is not satisfied with the terms. The law also provides potential franchisees with certain protections including a prohibition on franchisors from misrepresenting any material facts or making false statements. Additionally, it limits the franchisor’s ability to collect fees from the franchisee without providing some value in return. Finally, the law requires all franchise agreements to be in writing.

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What are the laws governing the sale of a franchise?

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