For immediate release

Contact: Terry Hill, 202-628-8000

WASHINGTON, D.C., Feb. 16 – Legislation backed by the International Franchise Association clarifying certain registration procedures of the Virginia Retail Franchising Act was unanimously approved by the Virginia Senate on a 37-0 vote on Feb. 15.  Gov. Tim Kaine (D) is expected to sign the House Bill 2786 into law in the coming days. 

The measure, which also got unanimous 97-0 approval by the House of Delegates, will authorize the State Corporation Commission to require, as a condition of franchise registration, that the franchise fees and other funds paid by a franchisee to the franchisor be ineffective or deferred until the franchisor’s pre-opening obligations are fulfilled if the liabilities of the franchisor or any controlling person exceed the franchisor’s assets.  

Put forth by Del. Johnny Joannou (D-Portsmouth), House Bill 2786 also outlines that it is not unlawful for a person to grant an unregistered franchise of the franchise is exempted from registration by the commission by rule or order and will give the SCC the power to exempt by rule large franchisors. 

As the oldest and largest franchising trade group, the IFA strives to educate prospective franchise investors so that they are fully-equipped to handle the challenges of becoming small-business entrepreneurs.  The association’s Web site, www.franchise.org, is a portal to a variety of educational resources from online courses to pertinent top news stories about the sector to basic guidelines on how to buy a franchise.  

IFA serves more than 1,200 franchisor, 8,000 franchisee and 400 supplier members and in its mission to safeguard the business environment for franchising worldwide.  

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