An Act to amend and reenact §§ 13.1-559 and 13.1-563 of the Code of Virginia, relating to retail franchise agreements; governing law; competition restrictions.
HB69 amends Virginia’s retail franchise law, specifically the definitions and unlawful-offer provisions in §§ 13.1-559 and 13.1-563. The bill clarifies when the chapter applies to a franchise operating in Virginia and states that franchise contracts or agreements entered into under the chapter are governed by Virginia law. It also updates the statutory framework for retail franchise agreements, including the definition of a franchise and related terms such as franchise fee, franchisor, franchisee, and place of business.
The bill’s title indicates it also addresses competition restrictions, and the amended unlawful-offers section is part of the state’s regulation of how franchises may be offered or sold in the Commonwealth. In practical terms, the measure affects franchisors, franchisees, and subfranchisors doing business in Virginia by reinforcing state-law governance and the legal standards that apply to franchise offers and agreements.
HB69 changes Virginia’s franchise statute by revising definitions and reaffirming that franchise agreements covered by the chapter are governed by Virginia law. This affects retail franchise relationships that require a place of business in Virginia and may influence how franchise offers, disclosures, and contractual restrictions are structured and enforced under state law. The bill primarily impacts franchisors, franchisees, and related business entities operating in the Commonwealth.
No committee transcripts or recorded votes were provided, so there is no direct evidence of debate or opposition in the available materials. Based on the enacted chapter text, the bill appears to have moved through the legislature successfully and been approved as Chapter 553. The available record suggests a routine statutory update rather than a highly controversial measure.
The main potential point of contention is the bill’s treatment of governing law and competition restrictions in franchise agreements, which can affect the balance of power between franchisors and franchisees. Franchisors may prefer broader contractual flexibility, while franchisees may favor clearer Virginia-law protections and limits on restrictive terms. However, without committee discussion or vote data, specific objections or supporters cannot be identified from the provided record.