§ 13.1-557. Short title
This chapter shall be known as the “Retail Franchising Act.” 1972, c. 561.
§ 13.1-558. Policy of the Commonwealth
It is hereby declared to be the policy of the Commonwealth, through the exercise by the General Assembly of its power to regulate commerce partly or wholly within the Commonwealth of Virginia, to correct as rapidly as practicable such inequities as may exist in the franchise system so as to establish a more even balance […]
§ 13.1-559. Definitions; applicability of chapter
A. As used in this chapter, unless the context otherwise requires: “Commission” means the State Corporation Commission. “Controlling person” means a natural person who is an officer, director, or partner, or who occupies a similar status or performs a similar function, of a franchisor organized as a corporation, partnership, or other entity, or any person […]
§ 13.1-560. Registration required
It shall be unlawful for any person to sell or offer to sell a franchise in this Commonwealth unless the franchise is registered under the provisions of this chapter or exempted from registration by rule or order of the Commission. 1972, c. 561; 1978, c. 670; 2007, c. 668; 2009, c. 148.
§ 13.1-561. Procedure for registration; bond; renewal; fee
A. A franchise may be registered after filing with the Commission an application containing such relevant information as the Commission may require. The franchise shall be registered if the Commission finds that the franchisor, including any controlling person of the franchisor, is a person of good character and reputation and that all information required of […]
§ 13.1-561.1. Fees to cover expense of regulation
The fees paid into the state treasury under this chapter, except for fees and funds collected for the Literary Fund, shall be deposited into a special fund and specifically accounted for and used by the State Corporation Commission to defray the costs of supervising, implementing, and administering the provisions of this chapter and Chapters 5 […]
§ 13.1-562. Revocation of or refusal to renew registration
A. The Commission may, by order entered after a hearing on notice duly served on the defendant not less than thirty days before the date of the hearing, revoke the effectiveness of a franchise registration (or refuse to renew a registration if an application for renewal has been or is to be filed) if it […]
§ 13.1-563. Unlawful offers
It shall be unlawful for any person, in connection with the sale or offer to sell a franchise in this Commonwealth, directly or indirectly: 1. To employ any device, scheme, or artifice to defraud; 2. To make any untrue statement of a material fact or to omit to state a material fact necessary in order […]
§ 13.1-564. Unlawful cancellation of franchise; undue influence
It shall be unlawful for a franchisor to cancel a franchise without reasonable cause or to use undue influence to induce a franchisee to surrender any right given to him by any provision contained in the franchise. 1972, c. 561.
§ 13.1-565. Voidable franchises
Any franchise may be declared void by the franchisee at his option by sending a written declaration of that fact and the reasons therefor to the franchisor by registered or certified mail if: 1. The franchisor’s offer to sell a franchise was unlawful, as provided in § 13.1-560 or § 13.1-563, provided that the franchisee […]
§ 13.1-566. Service of process on nonresident franchisor
Every nonresident franchisor who has a franchise registered hereunder and which is not a corporation complying with § 13.1-759 or § 13.1-767 shall appoint in writing the clerk of the Commission as his agent upon whom may be served any process, notice, order or demand. Every nonresident franchisor who sells or offers to sell a […]
§ 13.1-567. Investigations; confidentiality of information and documents
The Commission may make such investigations within or outside of this Commonwealth as it deems necessary to determine whether any person has violated the provisions of this chapter or any order or injunction of the Commission, and any franchisor found guilty of such a violation may be required to pay the actual costs of the […]
§ 13.1-568. Injunctions
The Commission shall have all the power and authority of a court of record as provided in Article IX, Section 3 of the Constitution of Virginia to issue temporary and permanent injunctions against violations or attempted violations of this chapter or any order issued pursuant to this chapter. For the violation of any injunction or […]
§ 13.1-569. Crimes
A. Any person who shall knowingly and willfully make, or cause to be made, any false statement in any book of account or other paper of any person subject to the provisions of this chapter, or knowingly and willfully exhibit any false paper to the Commission, or who shall knowingly and willfully commit any act […]
§ 13.1-569.1. Commission may transmit record or complaint to locality where violation occurred
The Commission may transmit the record of any proceeding or complaint involving any violation of this chapter to the attorney for the Commonwealth in the county or city wherein the violation occurred. 1978, c. 670.
§ 13.1-570. Violations punishable by Commission
The Commission may, by judgment entered after a hearing on thirty days’ notice to the defendant, if it be proved that the defendant has knowingly made any misrepresentation of a material fact for the purpose of inducing the Commission to take any action or to refrain from taking action, or has violated any provision of […]
§ 13.1-571. Civil remedies
(a) Any franchisee who has declared the franchise void under § 13.1-565 or who has suffered damages by reason of any violation of § 13.1-564 may bring an action against its franchisor to recover the damages sustained by reason thereof. Such franchisee, if successful, shall also be entitled to the costs of the action, including […]
§ 13.1-572. Rules and forms
A. The Commission shall have authority from time to time to make, amend and rescind such rules and forms as may be necessary to carry out the provisions of this chapter, including, but not limited to rules and forms governing disclosure documents, applications and reports, escrow and deferral of franchise fees and other funds paid […]
§ 13.1-573. Certain records of Commission available to public; admissibility of copies; destruction
The information contained in or filed with any registration statement, application or report shall be available to the public at the office of the Commission. Copies thereof certified by the clerk under the seal of the Commission shall be admissible in evidence in lieu of the originals, and the originals shall not be removed from […]
§ 13.1-574. Effective date
The provisions of this chapter shall apply to grants and offers to grant franchises on and after July 1, 1972. 1972, c. 561.