In Virginia, which entity is responsible for securities and retail franchising division oversight related to Brain Balance?
Brain_Balance Franchise · 2025 FDDAnswer from 2025 FDD Document
BB FRANCHISING LLC
VIRGINIA ADDENDUM
The following modifies and amends BBF's Franchise Disclosure Document and Franchise Agreement:
In recognition of the restrictions contained in Section 13.1-564 of the Virginia Retail Franchising Act, the Franchise Disclosure Document for BB FRANCHISING LLC for use in the Commonwealth of Virginia shall be amended as follows:
Additional Disclosure: The following statements are added to Item 17h.
Pursuant to 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 ground 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.
Source: Item 23 — RECEIPTS (FDD pages 72–292)
What This Means (2025 FDD)
According to the 2025 Brain Balance Franchise Disclosure Document, the Virginia Retail Franchising Act impacts the franchise agreement. Specifically, Section 13.1-564 of the Virginia Retail Franchising Act restricts franchisors from canceling a franchise without reasonable cause. The addendum clarifies that if any default or termination grounds in the Franchise Agreement do not align with the "reasonable cause" definition under Virginia law, those provisions may not be enforceable.
This addendum serves to inform prospective Brain Balance franchisees in Virginia about their rights under the Virginia Retail Franchising Act, particularly concerning franchise termination. It highlights that certain termination clauses in the standard franchise agreement might not be enforceable if they conflict with Virginia law.
For a potential Brain Balance franchisee in Virginia, this means understanding the specific protections offered by the Virginia Retail Franchising Act is crucial. They should consult with a legal professional to ensure they fully understand their rights and the circumstances under which the franchise agreement can be terminated, despite what the standard agreement might state.