Does the Virginia Retail Franchising Act affect the standard Beehive Homes Franchise Agreement?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
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 Beehive Homes' 2025 Franchise Disclosure Document, the Virginia Retail Franchising Act does affect the standard franchise agreement for franchises located in Virginia. The FDD includes a "Virginia Amendment to Franchise Agreement" that outlines specific provisions of the Act that will apply to any Beehive Homes franchise in Virginia.
The amendment specifically addresses the franchise fee, stating that payment of the initial franchise fee and other initial payments owed by franchisees to Beehive Homes will be deferred until Beehive Homes has completed its pre-opening obligations under the Franchise Agreement. This means a new franchisee in Virginia will not have to pay the initial franchise fee until Beehive Homes has fulfilled its pre-opening responsibilities.
The amendment also clarifies that all other terms and provisions of the Franchise Agreement remain in full force and effect, except to the extent specifically modified by the Virginia Retail Franchising Act. Furthermore, any statement, questionnaire, or acknowledgment signed by a franchisee cannot waive claims under Virginia franchise law, including fraud in the inducement, or disclaim reliance on statements made by Beehive Homes. This provision supersedes any other conflicting term in any document related to the franchise.