For Focus Cfo franchisees in Virginia, what Virginia law governs the cancellation of a franchise?
Focus_Cfo Franchise · 2025 FDDAnswer from 2025 FDD Document
FOR THE STATE OF VIRGINIA
- The following language is added to the end of the "Summary" section of Item 17(e), entitled Termination by franchisor without cause:
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.
- 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.
THE VIRGINIA NOTICE APPLIES ONLY TO FRANCHISEES WHO ARE RESIDENTS OF VIRGINIA OR LOCATE THEIR FRANCHISES IN VIRGINIA.
Source: Item 23 — Receipts (FDD pages 37–126)
What This Means (2025 FDD)
According to the 2025 Focus Cfo Franchise Disclosure Document, for franchisees residing in Virginia or locating their franchise in Virginia, Section 13.1-564 of the Virginia Retail Franchising Act governs franchise cancellations. This law makes it unlawful for Focus Cfo to cancel a franchise without reasonable cause.
This means that if any grounds for default or termination stated in the Franchise Agreement do not constitute "reasonable cause" as defined in the Virginia Retail Franchising Act or the laws of Virginia, that specific provision may not be enforceable. This provides a level of protection to Focus Cfo franchisees in Virginia against potentially arbitrary or unfair terminations.
Additionally, the FDD states that no statement, questionnaire, or acknowledgment signed by a franchisee can waive claims under any applicable state franchise law, including fraud in the inducement, or disclaim reliance on any statement made by Focus Cfo or its representatives. This ensures that Focus Cfo franchisees in Virginia retain their legal rights and protections under state franchise law, regardless of any agreements they may have signed.