Are there state-specific riders to the Cicis Area Development Agreement included in the FDD exhibit for Virginia?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
VIRGINIA
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- 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.
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- The "Summary" section of Item 17(h), entitled "Cause defined non curable defaults", is amended by adding the following:
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 grounds for default or termination stated in the Franchise Agreement or the Area Development 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 "Summary" section of Item 17(o), entitled "Franchisor's option to purchase franchisee's business" is amended by adding the following:
Pursuant to 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 Area Development Agreement or Franchise Agreement involves the use of undue influence by the franchisor to induce a franchisee to surrender any rights given to him under the franchise, that provision may not be enforceable.
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 58–64)
What This Means (2025 FDD)
According to the 2025 Cicis Franchise Disclosure Document, there is a state-specific rider to the Area Development Agreement included in the FDD exhibit for Virginia. The rider includes specific provisions that modify the standard Area Development Agreement to comply with Virginia law.
The Virginia rider addresses certain legal aspects of the franchise relationship. Specifically, it states that no statement or acknowledgment signed by the franchisee can waive claims under Virginia franchise law, including fraud. It also amends the sections related to termination and the franchisor's option to purchase the franchisee's business, noting that certain provisions may not be enforceable under the Virginia Retail Franchising Act if they lack "reasonable cause" or involve "undue influence."
These stipulations are important for prospective Cicis franchisees in Virginia as they provide additional protection under state law. Franchisees should carefully review these riders with legal counsel to fully understand their rights and obligations under the Area Development Agreement and Virginia law. These riders modify the original agreement, and it is important to understand how these changes impact the franchisee and franchisor relationship.