In Virginia, what is the geographic limit of the Virginia addendum's applicability to the Better Blend franchise?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
In the Commonwealth of Virginia only, this Disclosure Document is amended as follows:
The following statements are 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 do 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.
Under Section 13.1-564 of the Virginia Retail Franchising Act, it is unlawful for a franchisor to use undue influence to induce a franchisee to surrender any right given to him under the franchise. If any provision of the Franchise Agreement involves the use of undue influence by the franchisor to induce a franchisee to surrender any rights given to the franchisee under the franchise, that provision may not be enforceable.
Item 17(t) is amended to read as follows:
Only the terms of the Franchise Agreement and other related written agreements are binding (subject to applicable state law). Any representations or promises outside of the Disclosure Document and Franchise Agreement may not be enforceable.
Source: Item 23 — RECEIPTS (FDD pages 43–157)
What This Means (2024 FDD)
According to Better Blend's 2024 Franchise Disclosure Document, the Virginia addendum applies specifically within the "Commonwealth of Virginia." This means that the modifications and additions outlined in the addendum are only legally relevant and enforceable for franchise agreements operating within the state's borders.
For a prospective Better Blend franchisee, this indicates that if they are considering opening a location in Virginia, they should pay close attention to the Virginia addendum. This addendum modifies certain aspects of the standard franchise agreement to comply with Virginia's specific franchising laws. These modifications can affect the franchisee's rights and obligations, particularly concerning termination clauses and the enforcement of agreement terms.
Specifically, the addendum addresses issues such as the franchisor's ability to cancel a franchise without reasonable cause and the use of undue influence to get a franchisee to surrender their rights. It also clarifies that only the terms within the Franchise Agreement and related written agreements are binding, subject to state law. Therefore, understanding the Virginia addendum is crucial for any potential Better Blend franchisee in Virginia to ensure they are fully aware of their legal protections and responsibilities under the franchise agreement within that state.