In Virginia, what statements are added to Item 17.h of the Craters & Freighters Franchise Disclosure Document?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
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."
Source: Item 22 — CONTRACTS (FDD pages 49–50)
What This Means (2025 FDD)
According to the 2025 Craters & Freighters Franchise Disclosure Document, specific statements are added to Item 17.h for franchisees operating in Virginia. These additions relate to the Virginia Retail Franchising Act.
Specifically, the disclosure states that under Section 13.1-564 of the Virginia Retail Franchising Act, it is unlawful for Craters & Freighters to cancel a franchise without reasonable cause. Furthermore, if any grounds for default or termination stated in the Franchise Agreement do not constitute "reasonable cause" as defined by the Virginia Retail Franchising Act or the laws of Virginia, that provision may not be enforceable.
In essence, this addendum ensures that Craters & Freighters franchisees in Virginia are protected by state law regarding franchise termination, requiring "reasonable cause" for any cancellation of the franchise agreement. This provides an additional layer of security for franchisees, as any termination clause in the agreement must align with Virginia law to be enforceable.