For a Dryject franchise in Virginia, what is required for a franchisor to cancel a franchise agreement?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
In recognition of the restrictions contained in Section 13.1-564 of the Virginia Retail Franchising Act, the Franchise Disclosure Document for DryJect Management, LLC for use in the Commonwealth of Virginia shall be amended as follows:
The Summary column of Item 17 Paragraph (h) of the Virginia Disclosure Document is modified by adding the following at the end of the sentence:
"Pursuant to Section 13.1.564 of the Virginia Franchising Act, it is unlawful for a franchisor to cancel a franchise agreement 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 laws of Virginia, that provision may not be enforceable."
Source: Item 8 — BUSINESS RELATIONSHIP (FDD pages 68–229)
What This Means (2025 FDD)
According to the 2025 Dryject Franchise Disclosure Document, there are specific stipulations regarding the cancellation of a franchise agreement in Virginia. It is unlawful for Dryject to cancel a franchise agreement without "reasonable cause." The FDD states that if any grounds for default or termination stated in the franchise agreement do not constitute "reasonable cause" as defined by the Virginia Retail Franchising Act or laws of Virginia, that provision may not be enforceable. This addendum ensures that Dryject franchisees in Virginia are protected by the state's franchising laws, which require reasonable cause for termination.
This protection is important for prospective franchisees because it prevents Dryject from arbitrarily terminating the franchise agreement. The "reasonable cause" standard provides a legal basis for challenging a termination that the franchisee believes is unfair or unjustified. This addendum aims to provide a level of security and fairness in the franchise relationship, aligning the franchise agreement with Virginia's specific legal requirements.
It is important for a prospective Dryject franchisee in Virginia to carefully review the franchise agreement and understand what constitutes "reasonable cause" for termination under Virginia law. They should also seek legal counsel to ensure they fully understand their rights and obligations under the franchise agreement and the Virginia Retail Franchising Act. This will help them make an informed decision about investing in a Dryject franchise and protect their investment in the event of a dispute with the franchisor.