In Virginia, what effect do statements, questionnaires, or acknowledgements signed by a Marble Slab Creamery franchisee have on waiving claims under state franchise law?
Marble_Slab_Creamery Franchise · 2025 FDDAnswer from 2025 FDD Document
ADDENDUM TO MARBLE SLAB FRANCHISING, LLC DISCLOSURE DOCUMENT FOR THE STATE OF VIRGINIA
- In recognition of the restrictions contained in Section 13.1-564 of the Virginia Retail Franchising Act, the Franchise Disclosure Document for Marble Slab Franchising, LLC for use in the Commonwealth of Virginia shall be amended as follows:
Additional Disclosure: The following statements are added to Item 17.h:
Under 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 grounds 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.
Under Section 13.1-564 of the Virginia Retail Franchising Act, it is unlawful for a franchisor to use undue influence to induce a franchisee to surrender any right given to him under the franchise. If any provision of the Franchise Agreement involves the use of undue influence by the franchisor to induce a franchisee to surrender any rights given to him under the franchise, that provision may not be enforceable.
Source: Item 23 — RECEIPT (FDD pages 101–346)
What This Means (2025 FDD)
According to the 2025 Marble Slab Creamery Franchise Disclosure Document, the addendum for Virginia addresses restrictions within Section 13.1-564 of the Virginia Retail Franchising Act. It states that it is unlawful for Marble Slab Creamery to cancel a franchise without reasonable cause. Therefore, if any grounds for default or termination stated in the franchise agreement do not constitute "reasonable cause" as defined by the Virginia Retail Franchising Act or Virginia laws, that specific provision may not be enforceable.
Additionally, the addendum specifies that it is unlawful for Marble Slab Creamery to use undue influence to induce a franchisee to surrender any right given to them under the franchise. Consequently, any provision within the Franchise Agreement that involves undue influence by Marble Slab Creamery to get a franchisee to surrender their rights may also be deemed unenforceable.
In practical terms, this means that Marble Slab Creamery franchisees in Virginia retain certain protections under state law, regardless of what the standard franchise agreement might say. Virginia franchisees cannot be forced to forfeit their rights through undue influence, and terminations must be based on reasonable cause as defined by Virginia law. This addendum aims to ensure that the Virginia Retail Franchising Act takes precedence over conflicting terms in the franchise agreement, providing additional security for franchisees operating in Virginia.