In Virginia, what section of the Virginia Franchising Act is referenced in the Dryject addendum regarding reasonable cause for termination?
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, the addendum for the state of Virginia references Section 13.1-564 of the Virginia Retail Franchising Act concerning the termination of a franchise agreement. The addendum modifies Item 17 Paragraph (h) of the Virginia Disclosure Document, clarifying that it is unlawful for Dryject to cancel a franchise agreement without reasonable cause, as defined in Section 13.1-564. If any termination grounds in the franchise agreement do not meet the definition of "reasonable cause" under Virginia law, those provisions may not be enforceable.
This addendum ensures that Dryject franchisees in Virginia are protected by the state's franchising laws, specifically regarding termination. It prevents Dryject from enforcing termination clauses that do not align with the "reasonable cause" standard established by Virginia law. This provision aims to provide franchisees with greater security and recourse against potentially unfair termination practices.
Furthermore, the addendum states that no statement, questionnaire, or acknowledgment signed by a franchisee can waive claims under state franchise law or disclaim reliance on statements made by Dryject. This reinforces the franchisee's rights and protections under Virginia law, preventing Dryject from using contractual language to circumvent these protections. This aspect is particularly important as it ensures that franchisees cannot inadvertently forfeit their legal rights through standard paperwork.