In Virginia, does the additional disclosure regarding Section 13.1-654 of the Virginia Retail Franchising Act supersede other terms in documents related to the City Publications franchise?
City_Publications Franchise · 2025 FDDAnswer from 2025 FDD Document
FOR THE STATE OF VIRGINIA:
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, for franchisees in Virginia, a specific provision addresses the Virginia Retail Franchising Act. This provision states that no statement, questionnaire, or acknowledgment signed by a franchisee regarding the commencement of the franchise can waive claims under any applicable state franchise law, including fraud in the inducement, or disclaim reliance on statements made by City Publications or its representatives.
This specific provision explicitly supersedes any other term in any document executed in connection with the City Publications franchise. This means that any conflicting terms in the franchise agreement or related documents are overridden by this protection for the franchisee.
In practical terms, this ensures that a City Publications franchisee in Virginia cannot unknowingly or unintentionally give up their rights under Virginia franchise law through standard paperwork. It strengthens the franchisee's position by ensuring they can pursue claims of fraud or misrepresentation, regardless of what other documents might say. This type of clause is intended to protect franchisees from overreaching by the franchisor and is a positive sign for prospective franchisees in Virginia.