In Virginia, can a franchisee disclaim reliance on statements made by City Publications or its representatives?
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, franchisees in Virginia cannot disclaim reliance on statements made by City Publications or its representatives. Specifically, any statement, questionnaire, or acknowledgment signed by a franchisee in connection with starting the franchise relationship cannot waive claims under state franchise law, including fraud in the inducement, or disclaim reliance on statements made by City Publications or its representatives. This protection is provided under Section 13.1-654 of the Virginia Retail Franchising Act.
This means that even if a franchisee signs a document suggesting they are not relying on statements made by City Publications, that document will not prevent them from later claiming they relied on those statements, especially in cases of fraud. This provision is designed to protect franchisees from potentially misleading information provided by the franchisor during the sales process. It ensures that franchisees retain their legal rights to pursue claims based on misrepresentations, regardless of any disclaimers they may have signed.
This protection for franchisees in Virginia supersedes any other conflicting terms in any document executed in connection with the franchise agreement. This ensures that the franchisee's rights under the Virginia Retail Franchising Act are upheld, regardless of any attempts by City Publications to limit those rights through contractual language. This addendum strengthens the franchisee's position by ensuring they can hold City Publications accountable for the accuracy and truthfulness of the information provided during the franchise sales process.