In Virginia, what happens if a provision of the Kidokinetics Franchise Agreement involves undue influence by the Franchisor to induce a franchisee to surrender any rights?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
Item 17(h). The following is added to Item 17(h):
"Pursuant to Section 13.1-564 of the Virginia Retail Franchising Act, it is unlawful for a franchisor to use undue influence to induce a franchise to surrender any right given to him under the franchise. If any provision of the Franchise Agreement or Supplemental Agreements involve the use of undue influence by the Franchisor to induce a franchisee to surrender any rights given to franchisee under the Franchise, that provision may not be enforceable."
Source: Item 23 — RECEIPT (FDD pages 59–205)
What This Means (2024 FDD)
According to Kidokinetics's 2024 Franchise Disclosure Document, Virginia has specific regulations regarding undue influence in franchise agreements. If any provision within the Kidokinetics Franchise Agreement or its supplemental agreements involves the use of undue influence by Kidokinetics to pressure a franchisee into surrendering their rights, that particular provision may not be enforceable under Virginia law. This protection is explicitly provided under Section 13.1-564 of the Virginia Retail Franchising Act.
This means that a Kidokinetics franchisee in Virginia cannot be forced to give up rights granted to them under the franchise agreement through coercion or unfair pressure from Kidokinetics. The Virginia Retail Franchising Act aims to protect franchisees from overbearing franchisor tactics. This ensures that franchisees are not manipulated into making decisions that are against their best interests or that undermine their rights as outlined in the franchise agreement.
For a prospective Kidokinetics franchisee in Virginia, this provides a level of security and protection. It means that they have recourse if they believe Kidokinetics is using undue influence to force them to relinquish any of their rights. However, it's important for franchisees to understand what constitutes "undue influence" under Virginia law, and to seek legal counsel if they believe they are being subjected to such influence. This clause aims to create a fairer balance of power between Kidokinetics and its franchisees within the Commonwealth of Virginia.