What Virginia law necessitates the addendum to the Canine Dimensions Franchise Disclosure Document?
Canine_Dimensions 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 Canine Dimensions Franchising, LLC for use in the Commonwealth of Virginia shall be amended as follows:
Additional Disclosure: The following statements are added to Item 17.h:
"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."
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 36)
What This Means (2025 FDD)
According to Canine Dimensions' 2025 Franchise Disclosure Document, the addendum included for use in the Commonwealth of Virginia is required due to restrictions outlined in Section 13.1-564 of the Virginia Retail Franchising Act. This addendum specifically addresses franchise cancellations and franchisee waivers.
Specifically, the addendum clarifies that it is unlawful for Canine Dimensions to cancel a franchise without reasonable cause, as defined by the Virginia Retail Franchising Act or Virginia laws. If any termination grounds in the franchise agreement do not meet this definition of "reasonable cause", those provisions may not be enforceable. This protects franchisees from potentially unfair or arbitrary terminations.
Furthermore, the addendum ensures that no statement, questionnaire, or acknowledgment signed by a franchisee can waive claims under state franchise law, including claims of fraud in the inducement. It also prevents franchisees from disclaiming reliance on statements made by Canine Dimensions or its representatives. This provision overrides any conflicting terms in other documents, strengthening franchisee protections against potentially misleading information or unfair contract terms.