What state's laws does the Craters & Freighters franchise agreement require to be applied?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
CALIFORNIA
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- THE CALIFORNIA FRANCHISE INVESTMENT LAW REQUIRES THAT A COPY OF ALL PROPOSED AGREEMENTS RELATING TO THE SALE OF THE FRANCHISE BE DELIVERED TOGETHER WITH THE FRANCHISE DISCLOSURE DOCUMENT.
VIRGINIA
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.
In recognition of the restrictions contained in Section 13.1-564 of the Virginia Retail Franchising Act, the Franchise Disclosure Document for Craters & Freighters Franchise Company for use in the Commonwealth of Virginia shall be amended as follows:
Additional Disclosure. The following statements are added to Item 17.h.
Under 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 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."
WASHINGTON ADDENDUM TO THE FRANCHISE DISCLOSURE DOCUMENT, FRANCHISE AGREEMENT, AND RELATED AGREEMENTS
In the event of a conflict of laws, the provisions of the Washington Franchise Investment Protection Act, Chapter 19.100 RCW will prevail.
RCW 19.100.180 may supersede the franchise agreement in your relationship with the franchisor including the areas of termination and renewal of your franchise. There may also be court decisions which may supersede the franchise agreement in your relationship with the franchisor including the areas of termination and renewal of your franchise.
Source: Item 22 — CONTRACTS (FDD pages 49–50)
What This Means (2025 FDD)
Based on the 2025 Craters & Freighters Franchise Disclosure Document, the franchise agreement is subject to specific state laws, particularly in California, Virginia, and Washington. For franchisees operating in California, the California Franchise Investment Law mandates that a copy of all proposed agreements related to the sale of the franchise must be delivered along with the Franchise Disclosure Document. This ensures transparency and provides potential franchisees with all necessary information before entering into an agreement. In Virginia, the Virginia Retail Franchising Act protects franchisees by preventing them from waiving claims under state franchise law or disclaiming reliance on franchisor statements. Additionally, it stipulates that a franchisor cannot cancel a franchise without reasonable cause, offering franchisees a degree of security. For franchisees in Washington, the Washington Franchise Investment Protection Act takes precedence in the event of any conflict of laws. This act and related court decisions may supersede the franchise agreement, especially in areas concerning termination and renewal, providing additional protection to franchisees in that state. These state-specific addenda modify the standard franchise agreement to comply with local regulations and offer additional protections to franchisees operating within those states.