In Virginia, what is the effect of a Dryject franchisee signing an acknowledgment in connection with the commencement of the franchise relationship?
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."
No statement, questionnaire, or acknowledgment signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed in connection with the franchise.
Source: Item 8 — BUSINESS RELATIONSHIP (FDD pages 68–229)
What This Means (2025 FDD)
According to Dryject's 2025 Franchise Disclosure Document, a Virginia franchisee's signature on any statement, questionnaire, or acknowledgment related to starting the franchise does not waive their rights under state franchise law. This includes the right to bring claims for fraud in the inducement, meaning that franchisees cannot waive their right to sue Dryject for misleading them into signing the agreement. Additionally, franchisees cannot disclaim reliance on statements made by Dryject or its representatives.
This protection is specifically included as an addendum to the Dryject Franchise Disclosure Document for the state of Virginia, acknowledging the restrictions within the Virginia Retail Franchising Act. This addendum clarifies that any term in any document that contradicts this protection is superseded, meaning the state law takes precedence.
In practical terms, this means that even if a Dryject franchisee in Virginia signs a document that appears to waive certain legal rights or acknowledges reliance on Dryject's statements, those waivers or acknowledgments are not enforceable. This provides an added layer of protection for franchisees in Virginia, ensuring they can pursue legal claims under state franchise law regardless of any agreements signed at the beginning of the franchise relationship. This is particularly important in franchising, where there can be a power imbalance between the franchisor and franchisee.