What is the governing state law referenced in the Virginia Amendment to the Amorino Franchise Agreement?
Amorino Franchise · 2025 FDDAnswer from 2025 FDD Document
- Item 17(h) is amended to add the following:
"Under 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 or development 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."
Source: Item 22 — CONTRACTS (FDD pages 80–81)
What This Means (2025 FDD)
According to the 2025 Amorino Franchise Disclosure Document, the Virginia Amendment to the Franchise Agreement references the Virginia Retail Franchising Act. Specifically, Item 17(h) of the franchise agreement is amended to include a reference to Section 13.1-564 of this Act.
This section of the Virginia Retail Franchising Act addresses the conditions under which Amorino can terminate a franchise agreement. The amendment states that it is unlawful for Amorino to cancel a franchise without reasonable cause, as defined by the Virginia Retail Franchising Act or the laws of Virginia.
This amendment protects Amorino franchisees in Virginia by ensuring that the termination clauses in the franchise agreement adhere to the 'reasonable cause' standard established by Virginia law. If any termination grounds outlined in the franchise agreement do not meet this standard, those provisions may not be enforceable in Virginia. Prospective franchisees should carefully review the Virginia Retail Franchising Act to understand their rights and protections under Virginia law.