In Virginia, are any representations or promises outside of the Crave Cookies Disclosure Document and Franchise Agreement enforceable?
Crave_Cookies Franchise · 2025 FDDAnswer from 2025 FDD Document
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 do 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.
Under Section 13.1-564 of the Virginia Retail Franchising Act, it is unlawful for a franchisor to use undue influence to induce a franchisee to surrender any right given to him under the franchise. If any provision of the Franchise Agreement involves the use of undue influence by the franchisor to induce a franchisee to surrender any rights given to the franchisee under the franchise, that provision may not be enforceable.
Item 17(t) is amended to read as follows:
Only the terms of the Franchise Agreement and other related written agreements are binding (subject to applicable state law). Any representations or promises outside of the Disclosure Document and Franchise Agreement may not be enforceable.
Source: Item 23 — RECEIPTS (FDD pages 47–194)
What This Means (2025 FDD)
According to Crave Cookies' 2025 Franchise Disclosure Document, specifically the Virginia Addendum, the enforceability of representations or promises made outside of the formal documents is limited. For franchisees in Virginia, only the terms explicitly written in the Franchise Agreement and other related written agreements are considered binding, subject to state law. This means that any verbal promises, assurances, or representations made by Crave Cookies representatives that are not documented in the Franchise Agreement may not be legally enforceable.
This provision protects both Crave Cookies and the franchisee by ensuring that all key terms and conditions are documented and agreed upon in writing. It reduces the risk of misunderstandings or disputes based on undocumented claims. However, it also places a responsibility on the prospective franchisee to ensure that all important aspects of the agreement are included in the written contract before signing.
For a prospective Crave Cookies franchisee in Virginia, this means it is crucial to thoroughly review the Franchise Agreement and any related documents. If there are any verbal agreements or promises made during the negotiation process, the franchisee should insist that they be included in writing as part of the agreement. Failure to do so could result in those promises being unenforceable, potentially impacting the franchisee's investment and business operations. This is a common clause in franchise agreements to provide clarity and legal certainty for both parties involved.