Are there any exceptions to the binding nature of the Bombs Away Franchise Agreement in Virginia?
Bombs_Away Franchise · 2024 FDDAnswer from 2024 FDD Document
VIRGINIA ADDENDUM TO DISCLOSURE 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 36–117)
What This Means (2024 FDD)
According to Bombs Away's 2024 Franchise Disclosure Document, there are specific addenda that address the enforceability of certain provisions of the franchise agreement within the Commonwealth of Virginia. These exceptions are outlined in the Virginia Addendum to the Disclosure Document.
The addendum states that under Section 13.1-564 of the Virginia Retail Franchising Act, it is unlawful for Bombs Away to cancel a franchise without reasonable cause. Therefore, if any grounds for default or termination stated in the Franchise Agreement do not constitute "reasonable cause" as defined by Virginia law, that provision may not be enforceable. This protects franchisees from arbitrary termination.
Additionally, the addendum addresses undue influence, stating that it is unlawful for Bombs Away to use undue influence to induce a franchisee to surrender any right given to them under the franchise. If any provision of the Franchise Agreement involves such undue influence, that provision may also be deemed unenforceable. This safeguards the franchisee's rights against coercion.
Finally, the Virginia Addendum clarifies that only the terms of the Franchise Agreement and other related written agreements are binding, subject to applicable state law. Any representations or promises made outside of the Disclosure Document and Franchise Agreement may not be enforceable. This emphasizes the importance of ensuring all agreements are documented in writing to be legally binding.