Bill > HB69

This bill amends Virginia's franchise law to provide additional protections for franchisees by establishing two key provisions: first, it mandates that all franchise agreements must be governed by Virginia state law, ensuring consistent legal treatment for franchise contracts within the Commonwealth; and second, it prohibits franchise agreements from including competition restrictions that extend beyond the termination or expiration of the franchise agreement, with a specific exception that allows such restrictions only if they are approved by a court of competent jurisdiction. The bill also clarifies the definition of a franchise, specifying that certain types of retailer agreements (such as those where promotional sales account for less than 20% of gross sales) are not considered franchises. Additionally, the bill makes it unlawful for franchisors to engage in fraudulent practices, make misleading statements, or fail to provide franchisees with a copy of the franchise agreement and required disclosure documents. The legislation will not impact existing contracts entered into, extended, or modified on or before July 1, 2026, providing a transition period for existing franchise arrangements.

Business and Industry

https://lis.virginia.gov/bill-details/20261/HB69