What specific section of the Virginia Retail Franchising Act addresses the cancellation of a City Publications franchise?
City_Publications 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 City Publications Franchise Group, Inc.., 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 13.1-654 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 a 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 23 — RECEIPT (FDD pages 39–129)
What This Means (2025 FDD)
According to City Publications' 2025 Franchise Disclosure Document, Section 13.1-654 of the Virginia Retail Franchising Act addresses the cancellation of a franchise. The FDD specifies that it is unlawful for City Publications to cancel a franchise without reasonable cause, as defined within the Act or Virginia law. This amendment to Item 17.h of the FDD acknowledges the restrictions contained in Section 13.1-564 of the Virginia Retail Franchising Act.
This means that if any grounds for default or termination stated in the City Publications franchise agreement do not constitute "reasonable cause" under Virginia law, that provision may not be enforceable. This provides franchisees in Virginia with additional protection against potentially unfair or arbitrary termination by City Publications.
Furthermore, the FDD states that no statement, questionnaire, or acknowledgment signed by a franchisee can waive claims under state franchise law, including fraud in the inducement, or disclaim reliance on statements made by City Publications. This provision supersedes any other term in any document related to the franchise agreement, reinforcing franchisee rights and protections under Virginia law.