What is the purpose of the 'Additional Disclosure' section in the Virginia Rider for Burneys Sweets More?
Burneys_Sweets_More Franchise · 2025 FDDAnswer from 2025 FDD Document
In recognition of the restrictions contained in Section 13.1-564 of the Virginia Retail Franchising Act, the Franchise Disclosure Document for DMG BURNEY INC. for use in the Commonwealth of Virginia shall be amended as follows:
Additional Disclosure. 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 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.
The following statement is added to the Franchise Agreement:
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 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to the 2025 Burneys Sweets More Franchise Disclosure Document, the 'Additional Disclosure' section within the Virginia Rider serves to clarify and protect franchisee rights under the Virginia Retail Franchising Act. Specifically, it addresses two key areas: franchise termination and franchisee waivers.
The first addition to Item 17.h clarifies that Burneys Sweets More cannot terminate a franchise without "reasonable cause," as defined by Virginia law. This means that if any termination clauses in the standard franchise agreement do not meet the state's definition of "reasonable cause," those clauses may not be enforceable in Virginia. This provision aims to protect franchisees from potentially unfair or arbitrary terminations.
The second addition to the Franchise Agreement ensures that franchisees cannot waive their rights under Virginia franchise law, including claims of fraud in the inducement, nor can they disclaim reliance on statements made by Burneys Sweets More or its representatives. This prevents Burneys Sweets More from using standardized agreements to shield themselves from liability for misrepresentations or violations of state law. This provision explicitly overrides any conflicting terms in other documents signed in connection with the franchise, further strengthening franchisee protections within the Commonwealth of Virginia.