If any terms in the Ledgers Disclosure Document are inconsistent with specific terms for Virginia franchisees, which terms control?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
VIRGINIA
As to franchises governed by the Virginia Retail Franchising Act, if any of the terms of the Disclosure Document are inconsistent with the terms below, the terms below control.
- In recognition of the restrictions contained in Section 13.1-564 of the Virginia Retail Franchising Act, the Franchise Disclosure Document is amended as follows:
Additional Disclosure: The following statements are added to Item 17.h.
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 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to the 2025 Ledgers Franchise Disclosure Document, the terms for Virginia franchisees are governed by the Virginia Retail Franchising Act. If any terms in the Disclosure Document are inconsistent with the terms outlined below, the terms specified for Virginia control.
Specifically, the FDD states that Section 13.1-564 of the Virginia Retail Franchising Act restricts a franchisor's ability to cancel a franchise without reasonable cause. Therefore, the Ledgers Franchise Disclosure Document is amended to include an additional disclosure in Item 17.h, clarifying that any grounds for default or termination stated in the franchise agreement that do not constitute "reasonable cause" as defined by the Virginia Retail Franchising Act or Virginia laws may not be enforceable.
This means that as a prospective Ledgers franchisee in Virginia, you are afforded certain protections under the Virginia Retail Franchising Act, particularly regarding franchise termination. Ledgers cannot enforce termination clauses in the franchise agreement that do not meet the standard of "reasonable cause" as defined by Virginia law. This addendum ensures that the franchise agreement aligns with the legal requirements and protections provided by Virginia law to franchisees.