For a Beehive Homes franchise in Virginia, what is the geographic limit of the Virginia Amendment to Franchise Agreement?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
VIRGINIA AMENDMENT TO FRANCHISE AGREEMENT
Notwithstanding anything contained in the foregoing Franchise Agreement and Franchise Disclosure Document to the contrary, the following provisions of the Virginia Retail Franchising Act ("Act") shall apply to any franchise located in the State of Virginia, which shall control to the extent of any inconsistency:
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- Franchise Fee. Payment of the initial Franchise Fee and other initial payments owed by franchisees to the franchisor shall be deferred until the franchisor has completed its preopening obligations under the Franchise Agreement.
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- Other Provisions Unaffected: All other terms and provisions contained in the Franchise Agreement shall remain in full force and effect, except to the extent specifically modified herein.
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 23 — RECEIPTS (FDD pages 34–123)
What This Means (2025 FDD)
According to the 2025 Beehive Homes Franchise Disclosure Document, the Virginia Amendment to Franchise Agreement applies to any franchise located in the State of Virginia. This means that if a Beehive Homes franchise is established within Virginia, the provisions of the Virginia Retail Franchising Act will take precedence over any conflicting terms in the standard Franchise Agreement or Franchise Disclosure Document.
Specifically, the amendment addresses the payment of the initial franchise fee and other initial payments. These payments are deferred until Beehive Homes has fulfilled its pre-opening obligations as outlined in the Franchise Agreement. This adjustment ensures that franchisees in Virginia are not required to pay these initial fees until Beehive Homes has met its responsibilities in preparing the franchise for operation.
The amendment also clarifies that all other terms and provisions of the Franchise Agreement remain in effect, except for the specific modifications outlined in the Virginia Amendment. This ensures that the standard operating procedures, brand standards, and ongoing obligations of the franchisee are consistent with the Beehive Homes system, unless explicitly superseded by the state-specific amendment. Furthermore, no statement or acknowledgment signed by the franchisee can waive claims under Virginia franchise law or disclaim reliance on statements made by Beehive Homes, reinforcing franchisee protections within the state.
In summary, the Virginia Amendment to the Franchise Agreement is designed to ensure compliance with Virginia's franchise laws, particularly concerning initial payments and franchisee rights, while maintaining the integrity of the overall Beehive Homes franchise system. Prospective franchisees in Virginia should carefully review this amendment to understand their rights and obligations under state law.