Does the Virginia Addendum to the Desi District Disclosure Document amend Item 17(t)?
Desi_District Franchise · 2024 FDDAnswer from 2024 FDD Document
In the Commonwealth of Virginia only, this Disclosure Document is amended as follows:
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 52–140)
What This Means (2024 FDD)
According to Desi District's 2024 Franchise Disclosure Document, the Virginia Addendum does amend Item 17(t). Specifically, the addendum modifies Item 17(t) to clarify the enforceability of agreements.
The amended Item 17(t) states that only the terms within the Franchise Agreement and other related written agreements are binding, subject to applicable state law. This means that any representations or promises made outside of the Disclosure Document and Franchise Agreement may not be enforceable.
For a prospective Desi District franchisee in Virginia, this amendment emphasizes the importance of ensuring all critical terms and conditions are documented within the Franchise Agreement. Verbal promises or representations not included in the written agreements may not be legally binding, potentially impacting the franchisee's rights and obligations.