What Virginia law is referenced in the Crawl Space Ninja addendum?
Crawl_Space_Ninja Franchise · 2024 FDDAnswer from 2024 FDD Document
In recognition of the restrictions contained in Section 13.1-564 of the Virginia Retail Franchising Act, the Franchise Disclosure Document for Crawlspace Ninja Franchising, LLC for use in the Commonwealth of Virginia shall be amended as follows:
Additional Disclosure: The following statements are added to Item 17h:
Pursuant to 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 ground 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 23 — RECEIPT (FDD pages 51–176)
What This Means (2024 FDD)
According to the 2024 Crawl Space Ninja Franchise Disclosure Document, the Virginia addendum references Section 13.1-564 of the Virginia Retail Franchising Act. This reference appears in the context of restrictions related to franchise cancellation.
The addendum clarifies that it is unlawful for Crawl Space Ninja to cancel a franchise without reasonable cause, as defined within the Virginia Retail Franchising Act or other laws of Virginia. This means that any grounds for default or termination stated in the franchise agreement must align with the definition of "reasonable cause" under Virginia law to be enforceable.
For a prospective Crawl Space Ninja franchisee in Virginia, this addendum provides an additional layer of protection. It ensures that the franchise agreement cannot be terminated arbitrarily and that the franchisee has recourse if the termination is deemed without reasonable cause under Virginia law. This is a crucial consideration for franchisees as it affects the security and longevity of their investment.