Is Itan prohibited from entering into binding arbitration with franchisees under the Virginia Retail Franchising Act?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
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- We will not require that you prospectively assent to a waiver, condition, stipulation, or provision that purports to relieve any person from liability imposed by the Virginia Retail Franchising Act. This provision does not prohibit you and us from entering into binding arbitration consistent with the Virginia Retail Franchising Act.
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- Any provision in the Franchise Agreement or Supplemental Agreement that limits the time period in which you may assert a legal claim against us under the Virginia Retail Franchising Act is amended to provide for a four (4) year statute of limitations for purposes of bringing a claim arising under the Virginia Retail Franchising Act.
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, the franchise agreement does not prohibit Itan and a franchisee from entering into binding arbitration, even though certain provisions aim to protect the franchisee's rights under the Virginia Retail Franchising Act.
Specifically, Itan will not require a franchisee to waive any condition, stipulation, or provision that would relieve any person from liability imposed by the Virginia Retail Franchising Act. However, this does not prevent Itan and the franchisee from agreeing to binding arbitration.
Additionally, any provision in the franchise agreement that reduces the time period for a franchisee to assert a legal claim against Itan under the Virginia Retail Franchising Act is amended to allow a four-year statute of limitations for claims arising under the Act. This ensures franchisees have adequate time to pursue legal claims.