Franchise and Dealership Law in Wisconsin

For many people, running a franchise is a great way to become a business owner without having to deal with all the start-up issues of an entirely new business.

A franchise is a complete business model that looks much like every other business in its chain, like McDonalds or The UPS Store. Under the Wisconsin Franchise Investment Law, the franchise must include:

- (i) a marketing plan

- (ii) an association with a commercial symbol

- (iii) a franchise fee

A franchise relationship between the franchisor and franchisee is controlled by an agreement. The Federal Trade Commission and, in Wisconsin, the Wisconsin Department of Financial Institutions, regulate franchise laws. 

A dealership is different than a franchise. A dealership is an agreement between a grantor and a dealer that allows a dealer to sell the grantor’s product or service. Cars and farm implements are generally sold through a dealership model. In comparison to a franchise, a dealer has more independence to manage and control business operations. Wisconsin has enacted the Wisconsin Fair Dealership Law (“WFDL”). The WFDL provides protections for dealers against unfair treatment or groundless termination by grantors. 

If you are considering owning a franchise or dealership, contact the business lawyers at Murphy Desmond S.C., as we have successfully helped business owners in franchise and dealership law matters.