Virginia Franchise Filing and FDD Registration | Internicola Law Firm

Virginia Franchise Filing and FDD Registration: Virginia Franchise Laws

Virginia is a Franchise Registration State. The Initial FDD filing fee is $500 and the annual renewal fee is $250.

Virginia is a franchise registration state. Before you offer or sell a franchise in of Virginia, as a franchisor, must file and register your FDD with the Virginia State Corporation Commission. The Virginia FDD registration fee is $500 for initial registration applications and $250 for renewal applications.

Virginia Franchise Law

Virginia’s franchise law is known as the Retail Franchising Act and under Virginia law there are extensive laws and regulations that require FDD registration and govern the franchisor-franchisee relationship. The Corporation Commission’s Division of Securities and Retail Franchising is responsible for the implementation and enforcement of Virginia’s franchise registration requirements and franchise laws.

To learn more about registering your franchise in Virginia and how we can help get your FDD registered, give us a call at (800) 976-4904 or contact us.

Virginia Franchise and FDD Registration FAQ’s

Who Regulates Franchises in Virginia?

The Division of Securities and Retail Franchising of the Virginia Corporation Commission regulates and oversees enforcement of Virginia’s Retail Franchising Act.

Where are Virginia FDD Registration and Renewal Applications Filed?

Applications for initial FDD registration, annual renewals, and amendments are filed at:

Division of Securities and Retail Franchising
Tyler Building – 9th Floor
1300 E. Main Street
Richmond, VA 23219
The telephone number for the division is (804) 371-9051

What Should I Include with My Virginia Franchise Registration Application?

The franchise registration application should include:

What Financial Statements Are Required for Virginia FDD Registration?

Virginia requires audited financial statements and does not recognize or allow start-up franchisors to use an unaudited opening balance sheet. Virginia does not recognize or permit the phase-in of audited financial statements. For start-up franchisors new to franchising and within their first year of offering franchises, the initial FDD and registration application must include an audited opening balance sheet. Thereafter, annual renewal requires the inclusion of three years of audited financial statements comprised of “statement of operations (profit and loss statements)”, “statement of stockholders equity”, and “statement of cash flows”.

Additionally, if the date of the most recent audited financial statements included in your FDD is, as measured from the date that you file your registration application, more than 120 days old, then you must supplement your FDD to shall also include the following financial statements prepared in accordance with generally accepted accounting principles:

Does Virginia Impose Financial Assurance Requirements?

Yes. During Virginia FDD registration and renewal the state examiner will review the financial statements of your franchise company to determine if your company is solvent. If  the state examiner determines that your franchise company is either “insolvent” or “in danger of becoming insolvent” then the state state examiner may either refuse registration under Section 13.1-562 of the Retail Franchising Act or condition registration on the imposition and your satisfaction of a financial assurance requirement. Under Virginia’s administrative code a financial assurance requirement will be comprised of either an agreement to defer receipt of the initial franchise fee for each franchise sold in Virginia until you have satisfied your “pre-opening obligations under the franchise agreement” or the escrow of the initial franchise fee with an approved Virginia bank.

When Must I Renew My Virginia FDD Registration?

Virginia FDD registration must be renewed 30 days prior to the one year anniversary of your registration date. However, this does not negate your obligation to update your FDD on an annual basis within 120 days of the end of your fiscal year. In such instance if your 120 day annual renewal period is out of sync with your Virginia registration / renewal date, i.e., your Virginia registration has not yet expired, you may file a FDD registration amendment application.

Useful Links Concerning Virginia Franchise Laws

LEARN MORE

Visit our interactive franchise registration map and learn more about state franchise laws, FDD registration states and required franchise filings.

To learn more about how we can help register your FDD in Virginia and across the United States contact us at (800) 976-4904 or contact us.

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