Does the Virginia Retail Franchising Act apply to all All Team franchises?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
Notwithstanding anything contained in the foregoing Franchise Agreement, Area Development Agreement and Franchise Disclosure Document ("FDD") to the contrary, the following provisions of the Virginia Retail Franchising Act shall apply to any franchise or franchisee located in the State of Virginia, which shall control to the extent of any inconsistency:
The following is added to Item 17.h. of the FDD, and corresponding provisions in the Franchise Agreement and Area Development Agreement:
Pursuant to Section 13.1-564 of the Virginia Retail Franchising Act, it is unlawful for a franchisor to cancel a franchise without reasonable cause. If any grounds for default or termination stated in the Franchise Agreement does not constitute "reasonable cause," as that term may be defined in the Virginia Retail Franchising Act or the laws of Virginia, that provision may not be enforceable.
No statement, questionnaire, or acknowledgement signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed in connection with the franchise.
Source: Item 22 — CONTRACTS (FDD pages 33–34)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, the Virginia Retail Franchising Act does apply to All Team franchises located in Virginia. The FDD includes a "Virginia State Law Addendum" that specifically addresses the applicability of the Virginia Retail Franchising Act. This addendum states that the provisions of the Virginia Retail Franchising Act will apply to any All Team franchise or franchisee located in Virginia and that these provisions will take precedence over any conflicting terms in the Franchise Agreement, Area Development Agreement, and Franchise Disclosure Document.
Specifically, the addendum highlights Section 13.1-564 of the Virginia Retail Franchising Act, which makes it unlawful for All Team to cancel a franchise without reasonable cause. The addendum clarifies that if any grounds for default or termination stated in the Franchise Agreement do not constitute "reasonable cause" as defined by the Virginia Retail Franchising Act or the laws of Virginia, that provision may not be enforceable. This ensures that All Team franchisees in Virginia are protected against arbitrary or unreasonable termination of their franchise agreements.
Furthermore, the addendum states that no statement, questionnaire, or acknowledgment signed by a franchisee in connection with starting the franchise can waive claims under applicable state franchise law, including fraud in the inducement, or disclaim reliance on statements made by All Team or its representatives. This provision supersedes any other conflicting terms in any document related to the franchise, providing additional protection to All Team franchisees in Virginia.