What Virginia statute is referenced in the Kitchen Solvers addendum regarding restrictions?
Kitchen_Solvers Franchise · 2025 FDDAnswer from 2025 FDD Document
The following applies to franchisees and franchisees subject to Virginia statutes and regulations. Item numbers correspond to those in the main body:
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, the addendum for Virginia references Section 13.1-564 of the Virginia Retail Franchising Act. This statute places restrictions on a franchisor's ability to cancel a franchise agreement.
Specifically, the addendum states that it is unlawful for Kitchen Solvers to cancel a franchise without "reasonable cause," as defined by the Virginia Retail Franchising Act or other Virginia laws. This means that any grounds for default or termination outlined in the franchise agreement must align with the legal definition of "reasonable cause" to be enforceable in Virginia.
For a prospective Kitchen Solvers franchisee in Virginia, this addendum provides an additional layer of protection against potentially unfair or arbitrary termination of their franchise agreement. It ensures that Kitchen Solvers must have a legally sound reason for ending the franchise relationship, giving the franchisee recourse if the termination is deemed unreasonable under Virginia law.