Avoiding the Accidental Franchise

05/01/2003 / Charles Modell and Joseph Fittante

Do you have clients operating dealership programs? Do you have a business that offers licenses? Whenever drafting licensing and dealer arrangements, cautious practitioners should consider whether the Wisconsin Franchise Investment or Fair Dealership laws apply. Both laws (and similar laws in other states) offer a potential trap for the unwary - the creation of an accidental franchise, with resulting severe penalties and restrictions. This article recently ran in The Wisconsin Law Journal.