In Virginia, what is unlawful for Dryject to do regarding franchise agreement cancellation?
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, it is unlawful for Dryject to cancel a franchise agreement in Virginia without reasonable cause. The FDD includes an addendum specific to Virginia, acknowledging restrictions in Section 13.1-564 of the Virginia Retail Franchising Act. This addendum modifies Item 17, Paragraph (h) of the Virginia Disclosure Document, clarifying the conditions under which Dryject can terminate a franchise agreement.
This means that any grounds for default or termination stated in the franchise agreement must align with the definition of "reasonable cause" as defined in the Virginia Retail Franchising Act or other Virginia laws. If a termination clause in the franchise agreement does not meet this standard of "reasonable cause", it may not be enforceable in Virginia. This provision aims to protect franchisees from arbitrary or unfair terminations by ensuring that Dryject has a legitimate and justifiable reason for ending the franchise agreement.
Furthermore, the addendum specifies that no statement, questionnaire, or acknowledgment signed by a franchisee can waive claims under Virginia franchise law, including claims of fraud in the inducement, or disclaim reliance on statements made by Dryject or its representatives. This ensures that franchisees cannot inadvertently forfeit their legal rights through standard paperwork at the commencement of the franchise relationship. This provision supersedes any conflicting terms in any document related to the franchise agreement, reinforcing the protection of franchisee rights under Virginia law.