In Virginia, is it lawful for Mr. Sandless to cancel a franchise without reasonable cause?
Mr_Sandless Franchise · 2025 FDDAnswer from 2025 FDD Document
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 grounds for default or termination stated in the franchise agreement and development agreement does not constitute "reasonable cause," as that the term may be defined in the Virginia Retail Franchising Act or the laws of Virginia, the provision may not be enforceable.
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 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 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 30–34)
What This Means (2025 FDD)
According to the 2025 Mr. Sandless Franchise Disclosure Document, it is unlawful for Mr. Sandless to cancel a franchise in Virginia without reasonable cause. Specifically, Section 13.1-564 of the Virginia Retail Franchising Act states that any grounds for default or termination stated in the franchise agreement that do not constitute "reasonable cause" may not be enforceable. This protects franchisees from arbitrary or unfair termination.
Additionally, the Virginia Retail Franchising Act prohibits Mr. Sandless from using undue influence to induce a franchisee to surrender any rights granted to them under the franchise agreement. Any provision in the Franchise Agreement that involves such undue influence may not be enforceable. This provision aims to protect franchisees from being coerced into giving up their legal rights.
These stipulations are important for prospective Mr. Sandless franchisees in Virginia as they provide additional legal protections beyond the standard franchise agreement. Franchisees should carefully review the franchise agreement and understand their rights under the Virginia Retail Franchising Act, particularly regarding termination and the surrender of rights. It is advisable to seek legal counsel to ensure full comprehension of these protections.