What Virginia statute does the Chem Dry addendum relate to?
Chem_Dry Franchise · 2024 FDDAnswer from 2024 FDD Document
This Addendum relates to franchises sold in the state of Virginia and is intended to comply with Virginia statutes and regulations. In consideration of the execution of the Franchise Agreement, Chem-Dry, Inc. ("CDI") and Franchisee agree to amend the Franchise Agreement as follows:
- 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.
In all other respects, the Franchise Agreement will be construed and enforced according to its terms.
Source: Item 22 — CONTRACTS (FDD page 68)
What This Means (2024 FDD)
According to Chem Dry's 2024 Franchise Disclosure Document, the Virginia addendum is intended to ensure compliance with Virginia statutes and regulations. Specifically, it references Section 13.1-564 of the Virginia Retail Franchising Act, which addresses the unlawful cancellation of a franchise without reasonable cause.
For a prospective Chem Dry franchisee in Virginia, this means that certain termination clauses within the standard franchise agreement might not be enforceable if they conflict with the "reasonable cause" standards defined in the Virginia Retail Franchising Act or other Virginia laws. This addendum aims to protect franchisees from potentially unfair termination practices by Chem Dry.
Chem Dry franchisees should carefully review the Virginia addendum alongside the franchise agreement to understand their rights regarding termination and renewal under Virginia law. It's important to consult with a legal professional to fully grasp the implications of these provisions and how they apply to their specific circumstances.