What is unlawful for Pearce Bespoke to do in Virginia regarding a franchisee surrendering their rights?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
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 22 — CONTRACTS (FDD page 39)
What This Means (2025 FDD)
According to the 2025 Pearce Bespoke Franchise Disclosure Document, it is unlawful for Pearce Bespoke to use undue influence to induce a franchisee in Virginia to surrender any right given to them under the franchise agreement. This protection is explicitly stated in an addendum to Item 17.h of the franchise agreement, as required by the Virginia Retail Franchising Act.
This provision means that Pearce Bespoke cannot pressure or coerce a franchisee into giving up any rights they are entitled to under the franchise agreement. If any part of the agreement involves Pearce Bespoke using undue influence to get a franchisee to surrender their rights, that specific part of the agreement may not be legally enforceable in Virginia.
For a prospective franchisee, this is an important safeguard. It ensures that Pearce Bespoke cannot exploit its position as the franchisor to force franchisees to relinquish their legal rights. Franchisees should carefully review the franchise agreement and be aware of their rights under Virginia law to protect themselves from undue influence.
It is important for prospective franchisees to consult with a legal professional to fully understand their rights and obligations under the franchise agreement and the Virginia Retail Franchising Act. This will help ensure that they are not subjected to undue influence and that their rights are protected throughout the term of the franchise agreement.