Does the Virginia Addendum modify the Desi District Disclosure Document?
Desi_District Franchise · 2024 FDDAnswer from 2024 FDD Document
VIRGINIA ADDENDUM TO DISCLOSURE 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.
14
Source: Item 23 — RECEIPTS (FDD pages 52–140)
What This Means (2024 FDD)
Yes, according to Desi District's 2024 Franchise Disclosure Document, the Virginia Addendum does modify the disclosure document for franchisees in the Commonwealth of Virginia. The addendum includes specific statements that are added to Item 17(h) regarding the Virginia Retail Franchising Act, addressing unlawful cancellation of a franchise without reasonable cause and the prohibition of using undue influence to induce a franchisee to surrender their rights.
Furthermore, Item 17(t) is amended within the Virginia Addendum to clarify that only the terms of the Franchise Agreement and other related written agreements are binding, subject to applicable state law. This amendment emphasizes that any representations or promises made outside of the Disclosure Document and Franchise Agreement may not be enforceable, which sets a clear boundary for what a franchisee can legally rely upon.
In practical terms, this means that prospective Desi District franchisees in Virginia should pay close attention to these modifications. They should understand that certain protections are in place under Virginia law regarding franchise termination and the surrendering of rights. Additionally, they should ensure that all important terms and conditions are documented in the Franchise Agreement, as verbal promises or representations outside of the written agreement may not be legally binding.