In the Dryer Vent Squad agreement, what actions can be taken to address an unenforceable term?
Dryer_Vent_Squad Franchise · 2024 FDDAnswer from 2024 FDD Document
Rhode Island FDD Amendment*
Amendments to the Dryer Vent Squad Franchise Disclosure Document
- Item 17, "Renewal, Termination, Transfer and Dispute Resolution," Item 17 is supplemented by the addition of the following:
- A. The Rhode Island Franchise Investment Act, R.I. Gen. Law Ch. 395 Sec. 19-28.1-14 provides that a provision in a Franchise Agreement restricting jurisdiction or venue to a forum outside this state or requiring the application of the laws of another state is void with respect to a claim otherwise enforceable under the Rhode Island Franchise Investment Act.
- B. Any general release as a condition of renewal, termination or transfer will be void with respect to claims under the Rhode Island Franchise Investment Act.
Virginia FDD Amendment
Amendments to the Dryer Vent Squad Franchise Disclosure Document
Item 17, "Renewal, Termination, Transfer and Dispute Resolution," Item 17(h) is supplemented by the addition of the following:
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 Dryer Vent Squad 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.
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Washington FDD Amendment
Amendments to the Dryer Vent Squad Franchise Disclosure Document
In recognition of the Washington State Franchise Investment Protection Act, Chapter 19.100 RCW, the following amendments are made to the Franchise Disclosure Document:
In the event of a conflict of laws, the provisions of the Washington Franchise Investment Protection Act, Chapter 19.100 RCW will prevail.
Source: Item 23 — RECEIPTS (FDD pages 51–207)
What This Means (2024 FDD)
According to the 2024 Dryer Vent Squad Franchise Disclosure Document, specific amendments address the enforceability of terms within the franchise agreement, particularly in Virginia and Washington.
In Virginia, Item 17 of the FDD is supplemented to acknowledge the Virginia Retail Franchising Act, which makes it unlawful for a franchisor to cancel a franchise without reasonable cause. The amendment clarifies that if any grounds for default or termination stated in the Dryer Vent Squad franchise agreement do not constitute "reasonable cause" under Virginia law, that specific provision may not be enforceable. This protects the franchisee from termination without proper justification as defined by Virginia law.
For Washington State, the FDD amendments recognize the Washington State Franchise Investment Protection Act. In the event of a conflict of laws, the provisions of the Washington Franchise Investment Protection Act will take precedence. The Act may supersede the franchise agreement, especially in areas of termination and renewal. Additionally, for any arbitration or mediation involving a franchise purchased in Washington, the venue will be in Washington State or a mutually agreed-upon location. If litigation is not precluded, a franchisee can bring an action in Washington if it arises from the sale of franchises or a violation of the Washington Franchise Investment Protection Act.
These amendments ensure that Dryer Vent Squad franchisees in Virginia and Washington have additional protections under their respective state laws, which may override certain provisions of the standard franchise agreement to provide a fairer balance of power and protect franchisees from potentially unreasonable or unlawful actions by the franchisor.