factual

What is the effect of the Virginia Amendment on other terms in documents related to the Amorino franchise?

Amorino Franchise · 2025 FDD

Answer from 2025 FDD Document

"No statement, questionnaire, or acknowledgment 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 80–81)

What This Means (2025 FDD)

According to Amorino's 2025 Franchise Disclosure Document, the Virginia Amendment addresses the enforceability of certain statements and acknowledgments made by franchisees. Specifically, it stipulates that no statement, questionnaire, or acknowledgment signed by a franchisee in connection with starting the franchise can waive claims under Virginia franchise law, including claims of fraud.

This amendment also ensures that franchisees cannot disclaim reliance on statements made by Amorino or its representatives. This protection is significant because it prevents Amorino from enforcing clauses that might otherwise limit a franchisee's ability to pursue legal action based on misleading information. The amendment explicitly states that this provision supersedes any other conflicting terms in any document related to the franchise agreement.

For a prospective Amorino franchisee in Virginia, this amendment offers a degree of legal protection. It clarifies that signing standard franchise documents does not automatically waive their rights under Virginia franchise law. This could be particularly relevant if a franchisee believes they were induced into the agreement based on fraudulent or misleading statements made by Amorino. The amendment aims to create a fairer balance in the contractual relationship, ensuring that franchisees are not unknowingly giving up their legal rights.

In addition to the protections for franchisees, the Virginia Amendment also includes updates to Item 17(h) regarding termination rights, stating that any grounds for default or termination in the franchise agreement that do not constitute 'reasonable cause' under Virginia law may not be enforceable. Furthermore, Exhibit E, the Representations and Acknowledgment Statement, is deleted entirely, removing another potential area where franchisees might inadvertently waive their rights.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.