What is the specific Virginia statute, as referenced in the addendum, that impacts the Angry Chickz Franchise Disclosure Document?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
In recognition of the restrictions contained in Section 13.1-564 of the Virginia Retail Franchising Act, the Franchise Disclosure Document for Angry Chickz Franchising LLC for use in the Commonwealth of Virginia shall be amended as follows:
1. Item 17, Additional Disclosure. The following is added to Item 17.h:
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 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.
2. Item 22, Additional Disclosure. The following statement is added to Item 22:
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.
- Payment of all initial fees payable under the Franchise Agreement is deferred until Franchisor has satisfied its pre-opening obligations to you under the Franchise Agreement and your Angry Chickz business opens to the public.
Source: Item 23 — RECEIPTS (FDD pages 54–260)
What This Means (2025 FDD)
According to the 2025 Angry Chickz Franchise Disclosure Document, the addendum for the state of Virginia references Section 13.1-564 of the Virginia Retail Franchising Act. This statute places restrictions on franchise agreements within the Commonwealth of Virginia.
Specifically, the addendum modifies Item 17 of the FDD, adding a disclosure that it is unlawful for Angry Chickz to cancel a franchise without reasonable cause, as defined by Section 13.1-564. This means that if any termination clauses in the franchise agreement do not meet the standard of "reasonable cause" under Virginia law, those clauses may not be enforceable. This protects franchisees from potentially unfair termination.
Additionally, the addendum modifies Item 22, stating that no agreement signed by the franchisee can waive claims under Virginia franchise law, including claims of fraud. This ensures that franchisees retain their legal rights and cannot be forced to relinquish them through contractual terms. The addendum also states that payment of initial franchise fees is deferred until Angry Chickz has met its pre-opening obligations and the franchisee's business is open to the public, providing some financial protection to the franchisee during the initial setup phase.