What condition must be met for Focalpoint Coaching to cancel a franchise in Virginia?
Focalpoint_Coaching 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 "Summary" section of Item 17(h), entitled "Cause" defined – noncurable defaults, is amended by adding 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 grounds 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.
Source: Item 22 — Contracts (FDD pages 56–57)
What This Means (2025 FDD)
According to the 2025 Focalpoint Coaching Franchise Disclosure Document, the franchisor must have 'reasonable cause' to cancel a franchise in Virginia. The FDD includes an addendum specific to Virginia that references Section 13.1-564 of the Virginia Retail Franchising Act, stating that it is unlawful for a franchisor to cancel a franchise without reasonable cause.
This addendum also clarifies that if any grounds for default or termination stated in the franchise agreement do not constitute 'reasonable cause' as defined by the Virginia Retail Franchising Act or the laws of Virginia, that specific provision may not be enforceable. This means that while the franchise agreement might list various reasons for termination, only those that legally qualify as 'reasonable cause' in Virginia can be used to justify cancellation.
For a prospective Focalpoint Coaching franchisee in Virginia, this is an important protection. It ensures that Focalpoint Coaching cannot terminate the franchise agreement based on arbitrary or unfair reasons. The franchisee should become familiar with the Virginia Retail Franchising Act to understand what constitutes 'reasonable cause' in the eyes of the law. This knowledge can help them protect their investment and business from wrongful termination.