Are there any exceptions to Face Foundrie's right to terminate for cause?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
erence to this Addendum to the Franchise Disclosure Document, and only to the extent such provision is a then valid requirement of the statute.
ADDENDUM REQUIRED BY THE STATE OF VIRGINIA
In recognition of the restrictions contained in Section 13.1-564 of the Virginia Retail Franchising Act, the Franchise Disclosure Document for Face Foundrié Franchising L.L.C. for use in the Commonwealth of Virginia shall be amended as follows:
Additional Disclosure: The following statements are added to Item 17.h. for the Franchise Agreement:
"Pursuant to 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 ground for default or termination stated in the franchise agreement or development agreement does not constitute "reasonable cause;" as that term is defined in the Virginia Retail Franchising Act or the laws of Virginia, that provision may not be enforceable."
Each provision of this Addendum to the Franchise Disclosure Document shall be effective only to the extent, with respect to such provision, that the jurisdictional requirements of the Virginia Retail Franchising Act are met independently, without reference to this Addendum to the Franchise Disclosure Document, and only to the extent such provision is a then valid requirement of the statute.
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION OF THE FRANCHISE RELATIONSHIP (FDD pages 51–59)
What This Means (2025 FDD)
According to Face Foundrie's 2025 Franchise Disclosure Document, there are some state-specific exceptions to Face Foundrie's right to terminate a franchise agreement for cause.
In Virginia, the FDD states that if any ground for default or termination stated in the franchise agreement does not constitute "reasonable cause" as defined by the Virginia Retail Franchising Act, that provision may not be enforceable. This means Face Foundrie's ability to terminate for a cause listed in the agreement may be restricted if it doesn't meet Virginia's legal definition of reasonable cause.
In Washington, provisions in franchise agreements that permit Face Foundrie to repurchase the franchisee's business for any reason during the term of the franchise agreement without the franchisee's consent are unlawful, unless the franchise is terminated for good cause. This limits Face Foundrie's ability to buy back a franchise unless there is good cause for termination. Additionally, New York provides that a franchisee may terminate the agreement on any grounds available by law.
These state addenda modify the standard franchise agreement to comply with local laws, potentially offering franchisees greater protection against termination without proper cause compared to the standard agreement. Prospective franchisees should carefully review their state's specific addendum to understand their rights regarding termination.