552.23 (1) If the target company is an insurance company subject to regulation by the commissioner of insurance, a banking corporation subject to regulation by the commissioner division of banking, a savings bank or savings and loan association subject to regulation by the commissioner division of savings and loan, or a public service corporation or a company subject to regulation by the public service commission, the department of transportation or the office of the commissioner of railroads, the commissioner division of securities shall promptly furnish a copy of the registration statement filed under this chapter to the regulatory agency having supervision of the target company. Any hearing under this chapter involving any such target company shall be held jointly with the regulatory agency having supervision, and any determination following the hearing shall be made jointly with that regulatory agency.
27,6797
Section 6797
. 553.03 (3) of the statutes is amended to read:
553.03 (3) “Commissioner" “
Division" means the commissioner division of securities.
27,6798
Section 6798
. 553.03 (5m) (a) of the statutes is amended to read:
553.03 (5m) (a) The purchase or agreement to purchase goods at a bona fide wholesale price. The commissioner division may issue rules defining wholesale transactions exempt under this paragraph.
27,6799
Section 6799
. 553.03 (5m) (d) of the statutes is amended to read:
553.03 (5m) (d) Any other consideration which the commissioner division by rule excludes from “franchise fee".
27,6800
Section 6800
. 553.03 (9) of the statutes is amended to read:
553.03 (9) “Order" means every direction or determination of the commissioner division designated an order and made in writing over the signature and seal of by the commissioner division, except a rule as defined under s. 227.01 (13).
27,6801
Section 6801
. 553.22 (1) (intro.) of the statutes is amended to read:
553.22 (1) Exemption. (intro.) A franchisor may obtain an exemption for one year from registering an offer to sell or a sale of a franchise under s. 553.21 if the franchisor satisfies all of the following conditions other than any condition waived by the commissioner
division:
27,6802
Section 6802
. 553.22 (1) (c) of the statutes is amended to read:
553.22 (1) (c) Discloses in writing the information prescribed by rule of the commissioner division to each prospective franchisee at least 10 business days prior to the execution by the prospective franchisee of any binding franchise or other agreement or at least 10 business days prior to the receipt of any consideration, whichever first occurs.
27,6803
Section 6803
. 553.22 (1) (d) of the statutes is amended to read:
553.22 (1) (d) Files with the commissioner division at least 10 days before any offer or sale of a franchise in this state that relies on the exemption under this subsection a notice consisting of a copy of the information to be distributed to each prospective franchisee under par. (c), together with the consent to service of process as specified in s. 553.27 (10), the fee prescribed by rule of the commissioner division and any additional information required under s. 553.24 (6).
27,6804
Section 6804
. 553.22 (2) of the statutes is amended to read:
553.22 (2) Effective date. The
commissioner division may, by order, disallow the exemption within 10 days after the date on which the information required under sub. (1) is filed or, if additional information is required under s. 553.24 (6), within 10 days after the date on which that information is filed. If the commissioner division does not disallow the exemption within the applicable time period, the exemption takes effect on the day after the time period expires.
27,6805
Section 6805
. 553.22 (3) (intro.) of the statutes is amended to read:
553.22 (3) Extension. (intro.) The exemption under sub. (1) may be extended for additional one-year periods if the franchisor files all of the following with the commissioner division before the one-year exemption period, or an extension of the exemption period, expires or before a date set by the commissioner division if the commissioner division permits the franchisor to file for an extension after the expiration of the franchisor's previous exemption period:
27,6806
Section 6806
. 553.22 (3) (a) of the statutes is amended to read:
553.22 (3) (a) A copy of either the franchisor's current offering circular prepared in the form required by rule of the commissioner division under s. 553.27 (4) for offering circulars used in connection with a registered franchise or the franchisor's current disclosure document prepared in the form required by 16 CFR 436.
27,6807
Section 6807
. 553.22 (3) (d) of the statutes is amended to read:
553.22 (3) (d) The fee prescribed by rule of the
commissioner division.
27,6808
Section 6808
. 553.235 (2) (b) of the statutes is amended to read:
553.235 (2) (b) The commissioner
division may, by rule or order, withdraw or further condition the availability of the exemption under sub. (1).
27,6809
Section 6809
. 553.24 (1) of the statutes is amended to read:
553.24 (1) The commissioner
division may by order deny or revoke any exemption under s. 553.22, 553.23, 553.235 or 553.25 with respect to the offer or sale of a franchise for any of the grounds specified in s. 553.28 (1).
27,6810
Section 6810
. 553.24 (2) of the statutes is amended to read:
553.24 (2) If the public interest and the protection of investors so require, the commissioner division may, by order, summarily deny or revoke any exemption under s. 553.22, 553.23, 553.235 or 553.25 with respect to the offer or sale of a franchise.
27,6811
Section 6811
. 553.24 (4) (intro.) of the statutes is amended to read:
553.24 (4) (intro.) A person who offers or sells a franchise pursuant to an exemption under s. 553.22, 553.23, 553.235 or 553.25 after the exemption is denied or revoked by an order of the commissioner division does not violate s. 553.21 if:
27,6812
Section 6812
. 553.24 (6) of the statutes is amended to read:
553.24 (6) Within 10 days after the filing date of the information required under s. 553.22 or an application for an exemption under s. 553.25, the commissioner
division may require that additional information be filed if the commissioner division determines that the information is reasonably necessary to establish an exemption under s. 553.22 or 553.25. If the commissioner division requires additional information, the exemption is not effective until 10 days after the additional information is filed with the commissioner division, unless a shorter period is permitted by the commissioner division.
27,6813
Section 6813
. 553.25 of the statutes is amended to read:
553.25 (title) Exemption by commissioner division. The commissioner division may by rule or order exempt from registration under s. 553.21 any offer or sale of a franchise if registration is not necessary or appropriate in the public interest or for the protection of investors.
27,6814
Section 6814
. 553.26 (intro.) of the statutes is amended to read:
553.26 Application for registration. (intro.) The application for registration of an offer shall be filed with the commissioner division and shall contain the following:
27,6815
Section 6815
. 553.26 (4) of the statutes is amended to read:
553.26 (4) Such information concerning the identity and business experience of persons affiliated with the franchisor, as the commissioner division may by rule prescribe.
27,6816
Section 6816
. 553.26 (7) (intro.) of the statutes is amended to read:
553.26 (7) (intro.) A recent financial statement of the franchisor, together with a statement of any material changes in the financial condition of the franchisor from the date thereof. The commissioner division may by rule or order prescribe:
27,6817
Section 6817
. 553.26 (18) of the statutes is amended to read:
553.26 (18) A statement of the number of franchises presently operating and proposed to be sold, as may be required by rule of the commissioner division.
27,6818
Section 6818
. 553.26 (20) of the statutes is amended to read:
553.26 (20) Other information related to the application as the commissioner division may reasonably require.
27,6819
Section 6819
. 553.27 (2) of the statutes is amended to read:
553.27 (2) If the commissioner
division finds that the applicant has failed to demonstrate that adequate financial arrangements have been made to fulfill obligations to provide real estate, improvements, equipment, inventory, training or other items included in the offering, the commissioner division may by rule or order require the escrow of franchise fees and other funds paid by the franchisee or subfranchisor until no later than the time of opening of the franchise business, or, at the option of the franchisor, the furnishing of a surety bond as provided by rule of the commissioner division, if the commissioner division finds that such requirement is necessary and appropriate to protect prospective franchisees or subfranchisors.
27,6820
Section
6820. 553.27 (3) of the statutes is amended to read:
553.27 (3) The application for registration shall be accompanied by a proposed offering prospectus, which shall contain the material information set forth in the application for registration, as specified by rule of the commissioner division, and such additional disclosures as the commissioner division may require. The prospectus shall recite in bold type of not less than 10-point type that registration does not constitute approval recommendation or indorsement by the commissioner division.
27,6821
Section 6821
. 553.27 (4) of the statutes is amended to read:
553.27 (4) No franchise subject to registration under this chapter may be sold in this state unless a copy of the offering circular in the form prescribed by rule of the commissioner division is provided to the prospective franchisee at least 10 business days prior to the execution by the prospective franchisee of any binding franchise or other agreement or at least 10 business days prior to the receipt of any consideration, whichever first occurs.
27,6822
Section 6822
. 553.27 (6) of the statutes is amended to read:
553.27 (6) The commissioner
division may accept and act upon the opinions, appraisals and reports of any engineers, appraisers or other experts which may be presented by an applicant or any interested party, on any question of fact concerning or affecting the franchises proposed to be offered and sold. In lieu of, or in addition to, such opinions, appraisals and reports, the commissioner division may have any or all matters concerning or affecting such franchises investigated, appraised, passed upon and certified to the commissioner division by engineers, appraisers or other experts selected by the commissioner division.
27,6823
Section 6823
. 553.27 (7) of the statutes is amended to read:
553.27 (7) Any document filed under this chapter or ch. 551 may be incorporated by reference in a subsequent application filed under this chapter if it was filed within 2 years prior to the filing of such application, or is otherwise available in the files of the commissioner
division, to the extent that the document is currently accurate.
27,6824
Section 6824
. 553.27 (8) of the statutes is amended to read:
553.27 (8) The registration statement shall consist of a circular containing those items required by s. 553.26 to be disclosed to investors together with other documents which the commissioner division by rule prescribes.
27,6825
Section 6825
. 553.27 (9) of the statutes is amended to read:
553.27 (9) Neither the fact that an application for registration under this chapter has been filed, nor the fact that such registration has become effective constitutes a finding by the commissioner division that any document filed under this chapter is true, complete or not misleading. Neither any such fact nor the fact that an exemption is available for a transaction means that the commissioner division has passed in any way upon the merits or qualifications of, or recommended or given approval to, any person, franchise or transaction. No person may make or cause to be made to any prospective purchaser or offeree any representation inconsistent with this subsection.
27,6826
Section 6826
. 553.27 (10) of the statutes is amended to read:
553.27 (10) Every applicant for registration of an offer to sell franchises under this chapter shall file with the commissioner division, in such form as the commissioner division by rule prescribes, an irrevocable consent appointing the commissioner or the commissioner's successor in office division to be the applicant's attorney to receive service of any lawful process in any civil action against the applicant or the applicant's successor, executor or administrator, which arises under this chapter or any rule or order under this chapter after the consent has been filed, with the same force and validity as if served personally on the person filing the consent. A person who has filed a consent in connection with a previous registration under this chapter need not file another. Service may be made by leaving a copy of the process in the office of the commissioner division but it is not effective unless the plaintiff, who may be the commissioner division in an action instituted by the commissioner division, forthwith sends notice of the service and a copy of the process by registered or certified mail to the defendant or respondent at his or her last address on file with the commissioner division, and the plaintiff's affidavit of compliance with this subsection is filed in the case on or before the return day of the process, if any, or within such further time as the court allows.
27,6827
Section 6827
. 553.27 (11) (a) of the statutes is amended to read:
553.27 (11) (a) A registrant may withdraw a registration statement, registration renewal statement or an amendment to the registration statement, and an applicant may withdraw an application for registration or an amendment to the application, if the registrant or applicant files with the commissioner division a written request for withdrawal. Except as provided in par. (b), withdrawal is effective at 12 midnight of the day on which the withdrawal request is filed with the commissioner division.
27,6828
Section 6828
. 553.27 (11) (b) of the statutes is amended to read:
553.27 (11) (b) Withdrawal is effective at the time and upon the conditions set by the commissioner
division by order if a proceeding to deny effectiveness to, or to postpone, suspend or revoke effectiveness of, the registration statement is pending when the request for withdrawal is filed or is begun within 30 days after the request for withdrawal is filed.
27,6829
Section
6829. 553.28 (1) (intro.) of the statutes is amended to read:
553.28 (1) (intro.) The commissioner division may issue an order denying effectiveness to, or postponing, suspending or revoking effectiveness of, any registration statement if the commissioner division finds any of the following:
27,6830
Section 6830
. 553.28 (1) (a) of the statutes is amended to read:
553.28 (1) (a) That there has been a failure to comply with this chapter or the rules of the commissioner
division pertaining thereto.
27,6831
Section 6831
. 553.28 (1) (e) of the statutes is amended to read:
553.28 (1) (e) That the applicant or registrant has failed to pay the proper filing fee; but the commissioner division may enter only a denial order under this paragraph and the commissioner division shall vacate any such order when the deficiency has been corrected.
27,6832
Section 6832
. 553.28 (2) of the statutes is amended to read:
553.28 (2) If the public interest and the protection of investors so require, the commissioner division may by order summarily deny, postpone, suspend or revoke the effectiveness of the registration.
27,6833
Section 6833
. 553.28 (3) of the statutes is amended to read:
553.28 (3) The commissioner
division may vacate or modify an order entered under s. 553.24 or this section if the commissioner division finds that the conditions which prompted its entry have changed or that it is otherwise in the public interest to do so.
27,6834
Section 6834
. 553.29 (1) (a) of the statutes is amended to read:
553.29 (1) (a) Except as provided in par. (b), if no order under s. 553.24, 553.28 or 553.60 is in effect, registration of the offer of franchises becomes effective at 12 midnight of the 15th business day after the filing of the application for registration or the last amendment thereto, or at such earlier time as the commissioner
division determines.
27,6835
Section 6835
. 553.29 (1) (b) of the statutes is amended to read:
553.29 (1) (b) If the commissioner division requires the submission of additional information under s. 553.26 (20) before the registration of the offer of franchises becomes effective under par. (a) and if no order under s. 553.24, 553.28 or 553.60 is in effect, the registration becomes effective at 12 midnight of the 15th business day after the additional information is filed with the commissioner division, or at such earlier time as the commissioner division determines.
27,6836
Section 6836
. 553.29 (2) of the statutes is amended to read:
553.29 (2) A franchise offering shall be duly registered for a period of one year from the effective date of the registration, unless the commissioner division by order or rule specifies a different period.
27,6837
Section 6837
. 553.29 (3) of the statutes is amended to read:
553.29 (3) Registration of franchises shall be by order of the commissioner division, but the failure to issue an order shall not delay the effectiveness of a registration statement meeting the requirements of s. 553.26.
27,6838
Section 6838
. 553.30 (1) of the statutes is amended to read:
553.30 (1) The registration statement may be renewed for additional periods of one year each, unless the commissioner division by rule or order specifies a different period, by submitting to the commissioner
division a registration renewal statement no later than 15 business days prior to the expiration of the registration unless such period is waived by order of the commissioner
division. If no order under this chapter is in effect, renewal of the registration statement becomes effective on the day on which the prior registration statement expires or at such earlier time as the commissioner division determines.
27,6839
Section 6839
. 553.30 (2) of the statutes is amended to read:
553.30 (2) The registration renewal statement shall be in the form and content prescribed by the commissioner division, and shall be accompanied by 2 copies of the proposed offering prospectus.
27,6840
Section 6840
. 553.31 (1) of the statutes is amended to read:
553.31 (1) Except as provided in sub. (3), a franchisor shall within 30 days after the happening of any material event affecting a registered franchise notify the commissioner division in writing, by an application to amend the registration statement, of any material change in the information contained in the application as originally submitted, amended or renewed. The commissioner
division may by rule further define what shall be considered a material change for such purposes, and the circumstances under which a revised offering prospectus must accompany such application.
