AB150, s. 6811 20Section 6811. 553.24 (4) (intro.) of the statutes is amended to read:
AB150,2211,2321 553.24 (4) (intro.) A person who offers or sells a franchise pursuant to an
22exemption under s. 553.22, 553.23, 553.235 or 553.25 after the exemption is denied
23or revoked by an order of the commissioner department does not violate s. 553.21 if:
AB150, s. 6812 24Section 6812. 553.24 (6) of the statutes is amended to read:
AB150,2212,8
1553.24 (6) Within 10 days after the filing date of the information required
2under s. 553.22 or an application for an exemption under s. 553.25, the commissioner
3department may require that additional information be filed if the commissioner
4department determines that the information is reasonably necessary to establish an
5exemption under s. 553.22 or 553.25. If the commissioner department requires
6additional information, the exemption is not effective until 10 days after the
7additional information is filed with the commissioner department, unless a shorter
8period is permitted by the commissioner department.
AB150, s. 6813 9Section 6813. 553.25 of the statutes is amended to read:
AB150,2212,13 10553.25 (title) Exemption by commissioner department. The
11commissioner department may by rule or order exempt from registration under s.
12553.21 any offer or sale of a franchise if registration is not necessary or appropriate
13in the public interest or for the protection of investors.
AB150, s. 6814 14Section 6814. 553.26 (intro.) of the statutes is amended to read:
AB150,2212,17 15553.26 Application for registration. (intro.) The application for
16registration of an offer shall be filed with the commissioner department and shall
17contain the following:
AB150, s. 6815 18Section 6815. 553.26 (4) of the statutes is amended to read:
AB150,2212,2119 553.26 (4) Such information concerning the identity and business experience
20of persons affiliated with the franchisor, as the commissioner department may by
21rule prescribe.
AB150, s. 6816 22Section 6816. 553.26 (7) (intro.) of the statutes is amended to read:
AB150,2212,2523 553.26 (7) (intro.) A recent financial statement of the franchisor, together with
24a statement of any material changes in the financial condition of the franchisor from
25the date thereof. The commissioner department may by rule or order prescribe:
AB150, s. 6817
1Section 6817. 553.26 (18) of the statutes is amended to read:
AB150,2213,32 553.26 (18) A statement of the number of franchises presently operating and
3proposed to be sold, as may be required by rule of the commissioner department.
AB150, s. 6818 4Section 6818. 553.26 (20) of the statutes is amended to read:
AB150,2213,65 553.26 (20) Other information related to the application as the commissioner
6department may reasonably require.
AB150, s. 6819 7Section 6819. 553.27 (2) of the statutes is amended to read:
AB150,2213,178 553.27 (2) If the commissioner department finds that the applicant has failed
9to demonstrate that adequate financial arrangements have been made to fulfill
10obligations to provide real estate, improvements, equipment, inventory, training or
11other items included in the offering, the commissioner department may by rule or
12order require the escrow of franchise fees and other funds paid by the franchisee or
13subfranchisor until no later than the time of opening of the franchise business, or,
14at the option of the franchisor, the furnishing of a surety bond as provided by rule of
15the commissioner department, if the commissioner department finds that such
16requirement is necessary and appropriate to protect prospective franchisees or
17subfranchisors.
AB150, s. 6820 18Section 6820. 553.27 (3) of the statutes is amended to read:
AB150,2213,2519 553.27 (3) The application for registration shall be accompanied by a proposed
20offering prospectus, which shall contain the material information set forth in the
21application for registration, as specified by rule of the commissioner department, and
22such additional disclosures as the commissioner department may require. The
23prospectus shall recite in bold type of not less than 10-point type that registration
24does not constitute approval recommendation or indorsement by the commissioner
25department.
AB150, s. 6821
1Section 6821. 553.27 (4) of the statutes is amended to read:
AB150,2214,72 553.27 (4) No franchise subject to registration under this chapter may be sold
3in this state unless a copy of the offering circular in the form prescribed by rule of the
4commissioner department is provided to the prospective franchisee at least 10
5business days prior to the execution by the prospective franchisee of any binding
6franchise or other agreement or at least 10 business days prior to the receipt of any
7consideration, whichever first occurs.
AB150, s. 6822 8Section 6822. 553.27 (6) of the statutes is amended to read:
AB150,2214,169 553.27 (6) The commissioner department may accept and act upon the
10opinions, appraisals and reports of any engineers, appraisers or other experts which
11may be presented by an applicant or any interested party, on any question of fact
12concerning or affecting the franchises proposed to be offered and sold. In lieu of, or
13in addition to, such opinions, appraisals and reports, the commissioner department
14may have any or all matters concerning or affecting such franchises investigated,
15appraised, passed upon and certified to the commissioner department by engineers,
16appraisers or other experts selected by the commissioner department.
AB150, s. 6823 17Section 6823. 553.27 (7) of the statutes is amended to read:
AB150,2214,2218 553.27 (7) Any document filed under this chapter or ch. 551 may be
19incorporated by reference in a subsequent application filed under this chapter if it
20was filed within 2 years prior to the filing of such application, or is otherwise
21available in the files of the commissioner department, to the extent that the
22document is currently accurate.
AB150, s. 6824 23Section 6824. 553.27 (8) of the statutes is amended to read:
AB150,2215,3
1553.27 (8) The registration statement shall consist of a circular containing
2those items required by s. 553.26 to be disclosed to investors together with other
3documents which the commissioner department by rule prescribes.
AB150, s. 6825 4Section 6825. 553.27 (9) of the statutes is amended to read:
AB150,2215,135 553.27 (9) Neither the fact that an application for registration under this
6chapter has been filed, nor the fact that such registration has become effective
7constitutes a finding by the commissioner department that any document filed under
8this chapter is true, complete or not misleading. Neither any such fact nor the fact
9that an exemption is available for a transaction means that the commissioner
10department has passed in any way upon the merits or qualifications of, or
11recommended or given approval to, any person, franchise or transaction. No person
12may make or cause to be made to any prospective purchaser or offeree any
13representation inconsistent with this subsection.
AB150, s. 6826 14Section 6826. 553.27 (10) of the statutes is amended to read:
AB150,2216,615 553.27 (10) Every applicant for registration of an offer to sell franchises under
16this chapter shall file with the commissioner department, in such form as the
17commissioner department by rule prescribes, an irrevocable consent appointing the
18commissioner or the commissioner's successor in office department to be the
19applicant's attorney to receive service of any lawful process in any civil action against
20the applicant or the applicant's successor, executor or administrator, which arises
21under this chapter or any rule or order under this chapter after the consent has been
22filed, with the same force and validity as if served personally on the person filing the
23consent. A person who has filed a consent in connection with a previous registration
24under this chapter need not file another. Service may be made by leaving a copy of
25the process in the office of the commissioner department but it is not effective unless

1the plaintiff, who may be the commissioner department in an action instituted by the
2commissioner department, forthwith sends notice of the service and a copy of the
3process by registered or certified mail to the defendant or respondent at his or her
4last address on file with the commissioner department, and the plaintiff's affidavit
5of compliance with this subsection is filed in the case on or before the return day of
6the process, if any, or within such further time as the court allows.
AB150, s. 6827 7Section 6827. 553.27 (11) (a) of the statutes is amended to read:
AB150,2216,148 553.27 (11) (a) A registrant may withdraw a registration statement,
9registration renewal statement or an amendment to the registration statement, and
10an applicant may withdraw an application for registration or an amendment to the
11application, if the registrant or applicant files with the commissioner department a
12written request for withdrawal. Except as provided in par. (b), withdrawal is
13effective at 12 midnight of the day on which the withdrawal request is filed with the
14commissioner department.
AB150, s. 6828 15Section 6828. 553.27 (11) (b) of the statutes is amended to read:
AB150,2216,2016 553.27 (11) (b) Withdrawal is effective at the time and upon the conditions set
17by the commissioner department by order if a proceeding to deny effectiveness to, or
18to postpone, suspend or revoke effectiveness of, the registration statement is pending
19when the request for withdrawal is filed or is begun within 30 days after the request
20for withdrawal is filed.
AB150, s. 6829 21Section 6829. 553.28 (1) (intro.) of the statutes is amended to read:
AB150,2216,2422 553.28 (1) (intro.) The commissioner department may issue an order denying
23effectiveness to, or postponing, suspending or revoking effectiveness of, any
24registration statement if the commissioner department finds any of the following:
AB150, s. 6830 25Section 6830. 553.28 (1) (a) of the statutes is amended to read:
AB150,2217,2
1553.28 (1) (a) That there has been a failure to comply with this chapter or the
2rules of the commissioner department pertaining thereto.
AB150, s. 6831 3Section 6831. 553.28 (1) (e) of the statutes is amended to read:
AB150,2217,74 553.28 (1) (e) That the applicant or registrant has failed to pay the proper filing
5fee; but the commissioner department may enter only a denial order under this
6paragraph and the commissioner department shall vacate any such order when the
7deficiency has been corrected.
AB150, s. 6832 8Section 6832. 553.28 (2) of the statutes is amended to read:
AB150,2217,119 553.28 (2) If the public interest and the protection of investors so require, the
10commissioner department may by order summarily deny, postpone, suspend or
11revoke the effectiveness of the registration.
AB150, s. 6833 12Section 6833. 553.28 (3) of the statutes is amended to read:
AB150,2217,1613 553.28 (3) The commissioner department may vacate or modify an order
14entered under s. 553.24 or this section if the commissioner department finds that the
15conditions which prompted its entry have changed or that it is otherwise in the public
16interest to do so.
AB150, s. 6834 17Section 6834. 553.29 (1) (a) of the statutes is amended to read:
AB150,2217,2218 553.29 (1) (a) Except as provided in par. (b), if no order under s. 553.24, 553.28
19or 553.60 is in effect, registration of the offer of franchises becomes effective at 12
20midnight of the 15th business day after the filing of the application for registration
21or the last amendment thereto, or at such earlier time as the commissioner
22department determines.
AB150, s. 6835 23Section 6835. 553.29 (1) (b) of the statutes is amended to read:
AB150,2218,424 553.29 (1) (b) If the commissioner department requires the submission of
25additional information under s. 553.26 (20) before the registration of the offer of

1franchises becomes effective under par. (a) and if no order under s. 553.24, 553.28 or
2553.60 is in effect, the registration becomes effective at 12 midnight of the 15th
3business day after the additional information is filed with the commissioner
4department, or at such earlier time as the commissioner department determines.
AB150, s. 6836 5Section 6836. 553.29 (2) of the statutes is amended to read:
AB150,2218,86 553.29 (2) A franchise offering shall be duly registered for a period of one year
7from the effective date of the registration, unless the commissioner department by
8order or rule specifies a different period.
AB150, s. 6837 9Section 6837. 553.29 (3) of the statutes is amended to read:
AB150,2218,1210 553.29 (3) Registration of franchises shall be by order of the commissioner
11department, but the failure to issue an order shall not delay the effectiveness of a
12registration statement meeting the requirements of s. 553.26.
AB150, s. 6838 13Section 6838. 553.30 (1) of the statutes is amended to read:
AB150,2218,2114 553.30 (1) The registration statement may be renewed for additional periods
15of one year each, unless the commissioner department by rule or order specifies a
16different period, by submitting to the commissioner department a registration
17renewal statement no later than 15 business days prior to the expiration of the
18registration unless such period is waived by order of the commissioner department.
19If no order under this chapter is in effect, renewal of the registration statement
20becomes effective on the day on which the prior registration statement expires or at
21such earlier time as the commissioner department determines.
AB150, s. 6839 22Section 6839. 553.30 (2) of the statutes is amended to read:
AB150,2218,2523 553.30 (2) The registration renewal statement shall be in the form and content
24prescribed by the commissioner department, and shall be accompanied by 2 copies
25of the proposed offering prospectus.
AB150, s. 6840
1Section 6840. 553.31 (1) of the statutes is amended to read:
AB150,2219,92 553.31 (1) Except as provided in sub. (3), a franchisor shall within 30 days after
3the happening of any material event affecting a registered franchise notify the
4commissioner department in writing, by an application to amend the registration
5statement, of any material change in the information contained in the application
6as originally submitted, amended or renewed. The commissioner department may
7by rule further define what shall be considered a material change for such purposes,
8and the circumstances under which a revised offering prospectus must accompany
9such application.
AB150, s. 6841 10Section 6841. 553.31 (2) of the statutes is amended to read:
AB150,2219,1411 553.31 (2) An amendment to an application filed after the effective date of the
12registration of the sale of franchises, if the amendment is approved by the
13commissioner department, is effective on the date the commissioner department
14determines, having due regard for the public interest or the protection of franchisees.
AB150, s. 6842 15Section 6842. 553.41 (1) of the statutes is amended to read:
AB150,2219,2216 553.41 (1) No person may make or cause to be made, in any document filed with
17the commissioner department or in any proceeding under this chapter, any
18statement which is, at the time and in the light of the circumstances under which it
19is made, false or misleading in any material respect or, in connection with any
20statement required to be made under s. 553.31 (1), omit to state a material fact
21necessary in order to make the statement made, in the light of the circumstances
22under which they are made, not misleading.
AB150, s. 6843 23Section 6843. 553.41 (2) of the statutes is amended to read:
AB150,2219,2524 553.41 (2) No person may violate any order of the commissioner department
25or condition therein of which the person has notice.
AB150, s. 6844
1Section 6844. 553.41 (5) of the statutes is amended to read:
AB150,2220,92 553.41 (5) No person may wilfully represent to any prospective purchaser or
3seller of a franchise in this state that the filing of a franchise registration application
4or the registration of a franchise constitutes a finding by the commissioner
5department that any document filed under this chapter is true, complete, and not
6misleading, or in relation to an exemption or exception, that the commissioner
7department has passed in any way upon the merits of any franchise or wilfully
8represent in a similar manner that a franchise is registered or exempted when in
9fact, such is not the case.
AB150, s. 6845 10Section 6845. 553.51 (4) of the statutes is amended to read:
AB150,2220,1611 553.51 (4) No action may be maintained to enforce any liability under this
12section unless brought before the expiration of 3 years after the act or transaction
13constituting the violation upon which the liability is based or 90 days after delivery
14to the franchisee of a written notice disclosing any violation of s. 553.21 or 553.41,
15which notice shall be approved as to form by the commissioner department,
16whichever first expires.
AB150, s. 6846 17Section 6846. 553.53 (1) of the statutes is amended to read:
AB150,2220,2418 553.53 (1) No person may publish, distribute or use in this state any
19advertisement offering to sell or to purchase a franchise unless 2 true copies of the
20advertisement have been filed in the office of the commissioner with the department
21at least 5 days prior to the first publication, distribution or use thereof or such shorter
22period as the commissioner department by rule or order may allow, or unless the
23advertisement has been exempted from this section by rule of the commissioner
24department.
AB150, s. 6847 25Section 6847. 553.53 (2) of the statutes is amended to read:
AB150,2221,2
1553.53 (2) The commissioner department may by rule or order prohibit the use
2of advertising deemed false, fraudulent, misleading or deceptive.
AB150, s. 6848 3Section 6848. 553.54 (1) of the statutes is amended to read:
AB150,2221,114 553.54 (1) The department of justice or any district attorney, upon informing
5the department of justice, may commence an action in circuit court in the name of
6the state to restrain by temporary or permanent injunction any act or practice
7constituting a violation of this chapter or any rule or order hereunder. The
8commissioner department of financial institutions may refer such evidence as is
9available concerning any violation to the district attorney of the county in which the
10violation occurred or to the attorney general who may institute proceedings under
11this section.
AB150, s. 6849 12Section 6849. 553.54 (3) of the statutes is amended to read:
AB150,2221,2013 553.54 (3) The department of justice may subpoena persons, administer oaths,
14take testimony, require the production of books and other documents and may
15request the commissioner department of financial institutions to exercise the
16commissioner's department's authority under s. 553.55 to aid in the investigation of
17alleged violations of this chapter. If a person fails to obey any subpoena issued by
18the department of justice, that person may be coerced under s. 885.12, except that
19no person shall be required to furnish any testimony or evidence under this
20subsection which might tend to incriminate that person.
AB150, s. 6850 21Section 6850. 553.54 (4) of the statutes is amended to read:
AB150,2222,622 553.54 (4) In lieu of instituting or continuing an action pursuant to this section,
23the commissioner department of financial institutions or the department of justice
24may accept a written assurance of discontinuance of any act or practice alleged to be
25a violation of this chapter from the person who has engaged in such act or practice.

1The acceptance of such assurance by either the commissioner department of
2financial institutions
or the department of justice shall be deemed acceptance by
3other state officials if the terms of the assurance so provide. An assurance entered
4into pursuant to this subsection shall not be considered evidence of a violation of this
5chapter, however, a violation of such an assurance constitutes a violation of this
6chapter and shall be subject to all penalties and remedies provided therefor.
AB150, s. 6851 7Section 6851. 553.55 (1) of the statutes is amended to read:
AB150,2222,138 553.55 (1) The commissioner department may make such public or private
9investigations within or outside of this state as the commissioner department deems
10necessary to determine whether any person has violated or is about to violate this
11chapter or any rule or order hereunder or to aid in the enforcement of this chapter
12or in the prescribing of rules and forms hereunder, and publish information
13concerning the violation of this chapter or any rule or order hereunder.
AB150, s. 6852 14Section 6852. 553.55 (2) of the statutes is amended to read:
AB150,2222,2115 553.55 (2) For the purpose of any investigation or proceeding under this
16chapter, the commissioner department or any officer designated by the commissioner
17department may administer oaths and affirmations, subpoena witnesses, compel
18their attendance, take evidence and require the production of any books, papers,
19correspondence, memoranda, agreements or other documents or records which the
20commissioner department deems relevant or material to the inquiry. Failure to obey
21a subpoena or give evidence may be dealt with under s. 885.12.
AB150, s. 6853 22Section 6853. 553.55 (3) (a) of the statutes is amended to read:
AB150,2223,823 553.55 (3) (a) No person is excused from attending and testifying or from
24producing any document or record before the commissioner department, or in
25obedience to the subpoena of the commissioner department or any officer designated

1by the commissioner department, or in any proceeding instituted by the
2commissioner department, on the ground that the testimony or evidence required of
3the person may tend to incriminate the person or subject the person to a penalty or
4forfeiture. No individual may be prosecuted or subjected to any penalty or forfeiture
5for or on account of his or her testimony or evidence, after claiming his or her
6privilege against self-incrimination, except that the individual testifying is not
7exempt from prosecution and punishment for perjury or contempt committed in
8testifying.
AB150, s. 6854 9Section 6854. 553.56 (1) of the statutes is amended to read:
AB150,2223,1310 553.56 (1) Except as provided by sub. (2), no order may be entered by the
11commissioner department under s. 553.24, 553.28 or 553.53 (2) without appropriate
12prior notice to all interested parties, opportunity for hearing and written findings of
13fact and conclusions of law.
AB150, s. 6855 14Section 6855. 553.56 (2) of the statutes is amended to read:
Loading...
Loading...