To what extent is the additional disclosure regarding franchise cancellation applicable to Fitstop franchises in Virginia?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
FOR THE STATE OF VIRGINIA
Item 17 of the Disclosure Document is supplemented by the following:
- 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 does not constitute "reasonable cause," as that term may be defined in the Virginia Retail Franchising Act or the laws of Virginia, that provision may not be enforceable.
The provision of this Additional Disclosure 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 these Additional Disclosures.
Source: Item 23 — RECEIPTS (FDD pages 50–135)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, there is a specific stipulation regarding franchise cancellation that applies to franchisees in Virginia. It supplements Item 17 of the FDD, addressing franchise termination.
Specifically, under Section 13.1-564 of the Virginia Retail Franchising Act, Fitstop cannot cancel a franchise without "reasonable cause." This means that if any of the reasons for termination listed in the Franchise Agreement do not meet the legal definition of "reasonable cause" under Virginia law, those reasons may not be legally enforceable.
However, this additional disclosure is only effective if the jurisdictional requirements of the Virginia Retail Franchising Act are met independently, without relying on these additional disclosures themselves. This implies that the applicability of this protection depends on whether the franchise relationship falls under the purview of the Virginia Retail Franchising Act based on its own terms, regardless of this disclosure.