Donald W. Hiltpold, Plaintiff-Respondent, v. T-Shirts Plus, Inc., and Kenneth Johnson, Defendants-Appellants, 98 Wis. 2d 711

Summary

The franchisee purchased a franchise to operate a retail store selling T-shirts. The franchise agreement required the franchisee to pay five percent of the gross receipts to the franchisor. The agreement was never actually signed by the franchisee. Moreover, the franchisor never registered the offer of sale of the franchise with the state as required by Wisconsin's Franchise Investment Law, Wis. Stat. § 553.21(1). The franchisee filed a rescission action and the trial court granted summary judgment to the franchisee by ordering a rescission of the agreement. The court affirmed on appeal. The court held that the failure to register entitled the franchisee to have the franchise rescinded and to be financially restored to his presale position. The court found no error in the money damages awarded to the franchisee. A franchisor who illegally sold or offered to sell a franchise had no right to have the liability assessed against it for its illegal activities reduced because of claimed ...