On April 2, 2020, the Virginia State Corporation Commission (“SCC”) further extended the deadlines for franchisors to submit applications to renew their existing franchise registrations in response to the COVID-19 pandemic.
Virginia Extends Franchise Renewals Amid COVID-19 Outbreak
Following the example set earlier this week by Maryland, Virginia has announced that it is extending the renewal periods for franchisors registered in the state by a period of twenty-one days.
Virginia Proposes Amendment to Franchise Rules
The Virginia State Corporation Commission is considering implementing a new exemption to its disclosure and registration law for large initial franchise investments in excess of $5 million.
Should You Use State-Specific Franchise Disclosure Documents?
Some franchisors continue to use a different Franchise Disclosure Document for each state that has a franchise or registration law. This approach increases the administrative burden on franchisors, as well as the risk of unintentional violation of a state’s franchise law where more than one state law applies to a transaction.