Virginia is a franchise registration state. When registering your FDD in the State of Virginia franchisors are required, among other things, to file (for the purpose of obtaining registration) a copy of their current franchise FDD with the State Corporate Commission of Virginia.
Virginia's State Corporate Commission has issued the following formatting requirements for Virginia disclosure documents:
- Disclose all required information clearly, legibly, and concisely in a since document using plain English;
- The disclosure for each FDD item shall be separately titled and in the required order. Do not repeat the question in the FDD. Respond to each question fully. If the disclosure is not applicable, respond in the negative, but if an answer is required "if applicable," respond only if the requested information applies. Do not qualify a response with a reference to another document unless permitted by the instructions to that Item;
- For each Item in the FDD, type the requirement's Arabic number and item title. Exhibits should be identified by a letter of the alphabet;
- The disclosure must be in a form that permits each prospective franchisee to store, downloac, print or otherwise maintain the disclosure document for future reference;
- Separate documents (for example, a confidential operations manual) must not make representation or impose terms that contradict or are materially different from the disclosure in the FDD;
- Use 8-1/2 by 11 inch paper for the FDD and other forms. All documents and disclosures must be readable, using not less than 11-point type;
- Franchisors may prepare multistate disclosure documents by including nonpreempted, state-specific information in the text of the FDD or in a Virginia Addendum attached to the FDD. The Virginia Addendum may be included in an exhibit to the FDD. Any amendments to the franchise agreement may be included in the Virginia Addendum or in a separate exhibit immediately following the franchise agreement;
- The two copies of the Item 23 receipt pages should be the last two pages of the FDD and should be attached after all exhibits;
- Before furnishing a FDD, the franchisor must advise the prospective franchisee of the formats in which the FDD is made available, any prerequisites for obtaining the FDD in a particular format, and any conditions necessary for reviewing the FDD in a particular format; and
- Grossly deficient applications may be rejected summarily by the commission as incomplete for filing.
For additional information on franchising, franchise compliance and registering your FDD request a complimentary copy of "
The Revised Franchise Formula: A Guide to Franchising Your Business in the New Economy" by franchise attorney Charles N. Internicola, Esq.
Category: Franchisor Services
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