For Kitchen Solvers franchises in Virginia, what section of the Virginia Retail Franchising Act is referenced regarding cancellation of a franchise?
Kitchen_Solvers Franchise · 2025 FDDAnswer from 2025 FDD Document
Item 17, Additional Disclosure. In recognition of the restrictions contained in Section 13.1-564 of the Virginia Retail Franchising Act, the Franchise Disclosure Document for Franchisor for use in the Commonwealth of Virginia shall be amended as follows:
"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."
Source: Item 23 — Receipts (FDD pages 49–190)
What This Means (2025 FDD)
According to Kitchen Solvers' 2025 Franchise Disclosure Document, an addendum addresses the Virginia Retail Franchising Act. Specifically, Section 13.1-564 of the Virginia Retail Franchising Act is referenced concerning restrictions on franchise cancellation.
This section states that it is unlawful for Kitchen Solvers to cancel a franchise without reasonable cause. The addendum clarifies 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 provision may not be enforceable.
For a prospective Kitchen Solvers franchisee in Virginia, this addendum provides an additional layer of protection. It ensures that the franchise agreement adheres to Virginia law regarding what constitutes reasonable cause for cancellation, preventing Kitchen Solvers from enforcing termination clauses that do not meet the state's legal standards. This could be a significant benefit, offering more security and recourse in the event of a dispute over termination.