{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/13.1-559.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/13.1-559.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/13.1-559.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/13.1-559.html"}],"law_id":74631,"edition_id":1,"section_id":74631,"structure_id":15323,"section_number":"13.1-559","catch_line":"Definitions; applicability of chapter","history":"1972, c. 561; 1978, c. 670; 1990, c. 420; 1991, c. 475; 2007, c. 668; 2009, c. 148.","full_text":"A\n\nAs used in this chapter, unless the context otherwise requires:\n\t\t\t“Commission” means the State Corporation Commission.\n\t\t\t“Controlling person” means a natural person who is an officer, director, or partner, or who occupies a similar status or performs a similar function, of a franchisor organized as a corporation, partnership, or other entity, or any person who possesses, directly or indirectly, the power to direct or cause the direction of the management and policies of a franchisor, whether through the ownership of voting securities, by contract, or otherwise.\n\t\t\t“Franchise” means a written contract or agreement between two or more persons, by which:1\n\nA franchisee is granted the right to engage in the business of offering, selling or distributing goods or services at retail under a marketing plan or system prescribed in substantial part by a franchisor;2\n\nThe operation of the franchisee’s business pursuant to such plan or system is substantially associated with the franchisor’s trademark, service mark, trade name, logotype, advertising or other commercial symbol designating the franchisor or its affiliate; and3\n\nThe franchisee is required to pay, directly or indirectly, a franchise fee of $500 or more.\n\t\t\t\t“Franchise fee” means a fee or charge for the right to enter into or maintain a business under a franchise, including a payment or deposit for goods, services, rights, or training, but not including: (i) the payment of a bona fide wholesale price for starting and continuing inventory of goods for resale or (ii) the payment at fair market value for the purchase or lease of real property, fixtures, equipment, or supplies necessary to enter into or maintain the business.\n\t\t\t\t“Franchisee” means a person to whom a franchise is granted or sold.\n\t\t\t\t“Franchisor” means a person, including a subfranchisor, who grants or sells, or offers to grant or sell, a franchise.\n\t\t\t\t“Offer” or “offer to sell” includes every attempt to offer to dispose of or grant, and every solicitation of an offer to buy, a franchise or an interest in a franchise for value.\n\t\t\t\t“Place of business” means a building or portion thereof from which the goods or services authorized by the franchise are sold or offered for sale in person by the franchisee or employees or agents of the franchisee, or a truck or van used in the sale of such goods which is of a type designated by the franchisor and is equipped and marked in conformance with requirements of the franchisor.\n\t\t\t\t“Preopening obligations” means the franchisor’s obligations to provide to the franchisee, prior to the opening of the franchisee’s business, real estate, improvements, equipment, inventory, training, or other items to be included in the offering.\n\t\t\t\t“Sale” or “sell” includes every contract or agreement of sale or grant of, contract to sell, or disposition of a franchise or interest in a franchise for value.\n\t\t\t\t“Subfranchisor” means a person who is authorized by a franchisor to grant a franchise within a particular geographic region.B\n\nThis chapter shall apply only to a franchise the performance of which contemplates or requires the franchisee to establish or maintain a place of business within the Commonwealth of Virginia.\n\t\t\tA franchise does not include a contract or agreement by which a retailer of goods or services is granted the right either (i) to utilize a marketing plan or system to promote the sale or distribution of goods or services which are incidental and ancillary to the principal business of the retailer (sales under such a plan or system accounting for less than 20 percent of the retailer’s gross sales being deemed incidental and ancillary); or (ii) to sell goods or services within, or appurtenant to, a retail business establishment as a department or division thereof provided such retailer is not required to purchase such goods or services from the operator of such establishment.","order_by":null,"text":{"0":{"id":268230,"text":"As used in this chapter, unless the context otherwise requires:\n\t\t\t“Commission” means the State Corporation Commission.\n\t\t\t“Controlling person” means a natural person who is an officer, director, or partner, or who occupies a similar status or performs a similar function, of a franchisor organized as a corporation, partnership, or other entity, or any person who possesses, directly or indirectly, the power to direct or cause the direction of the management and policies of a franchisor, whether through the ownership of voting securities, by contract, or otherwise.\n\t\t\t“Franchise” means a written contract or agreement between two or more persons, by which:","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"A1"},"1":{"id":268231,"text":"A franchisee is granted the right to engage in the business of offering, selling or distributing goods or services at retail under a marketing plan or system prescribed in substantial part by a franchisor;","type":"section","prefixes":["A","1"],"prefix":"1","entire_prefix":"A1","prefix_anchor":"A1","level":2,"prior_prefix":"A","next_prefix":"A2"},"2":{"id":268232,"text":"The operation of the franchisee’s business pursuant to such plan or system is substantially associated with the franchisor’s trademark, service mark, trade name, logotype, advertising or other commercial symbol designating the franchisor or its affiliate; and","type":"section","prefixes":["A","2"],"prefix":"2","entire_prefix":"A2","prefix_anchor":"A2","level":2,"prior_prefix":"A1","next_prefix":"A3"},"3":{"id":268233,"text":"The franchisee is required to pay, directly or indirectly, a franchise fee of $500 or more.\n\t\t\t\t“Franchise fee” means a fee or charge for the right to enter into or maintain a business under a franchise, including a payment or deposit for goods, services, rights, or training, but not including: (i) the payment of a bona fide wholesale price for starting and continuing inventory of goods for resale or (ii) the payment at fair market value for the purchase or lease of real property, fixtures, equipment, or supplies necessary to enter into or maintain the business.\n\t\t\t\t“Franchisee” means a person to whom a franchise is granted or sold.\n\t\t\t\t“Franchisor” means a person, including a subfranchisor, who grants or sells, or offers to grant or sell, a franchise.\n\t\t\t\t“Offer” or “offer to sell” includes every attempt to offer to dispose of or grant, and every solicitation of an offer to buy, a franchise or an interest in a franchise for value.\n\t\t\t\t“Place of business” means a building or portion thereof from which the goods or services authorized by the franchise are sold or offered for sale in person by the franchisee or employees or agents of the franchisee, or a truck or van used in the sale of such goods which is of a type designated by the franchisor and is equipped and marked in conformance with requirements of the franchisor.\n\t\t\t\t“Preopening obligations” means the franchisor’s obligations to provide to the franchisee, prior to the opening of the franchisee’s business, real estate, improvements, equipment, inventory, training, or other items to be included in the offering.\n\t\t\t\t“Sale” or “sell” includes every contract or agreement of sale or grant of, contract to sell, or disposition of a franchise or interest in a franchise for value.\n\t\t\t\t“Subfranchisor” means a person who is authorized by a franchisor to grant a franchise within a particular geographic region.","type":"section","prefixes":["A","3"],"prefix":"3","entire_prefix":"A3","prefix_anchor":"A3","level":2,"prior_prefix":"A2","next_prefix":"B"},"4":{"id":268234,"text":"This chapter shall apply only to a franchise the performance of which contemplates or requires the franchisee to establish or maintain a place of business within the Commonwealth of Virginia.\n\t\t\tA franchise does not include a contract or agreement by which a retailer of goods or services is granted the right either (i) to utilize a marketing plan or system to promote the sale or distribution of goods or services which are incidental and ancillary to the principal business of the retailer (sales under such a plan or system accounting for less than 20 percent of the retailer’s gross sales being deemed incidental and ancillary); or (ii) to sell goods or services within, or appurtenant to, a retail business establishment as a department or division thereof provided such retailer is not required to purchase such goods or services from the operator of such establishment.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A3"}},"ancestry":[{"id":15323,"edition_id":1,"name":"Retail Franchising Act","identifier":"8","label":"chapter","depth":2,"order_by":1,"parent_id":12744,"metadata":{},"date_created":"2026-06-26 03:53:58","date_modified":"2026-06-26 03:53:58","permalink":{"id":150081,"object_type":"structure","relational_id":15323,"identifier":"8","token":"13.1\/8","url":"\/13.1\/8\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12744,"edition_id":1,"name":"Corporations","identifier":"13.1","label":"title","depth":1,"order_by":1,"parent_id":null,"metadata":{},"date_created":"2026-06-26 03:43:51","date_modified":"2026-06-26 03:43:51","permalink":{"id":147493,"object_type":"structure","relational_id":12744,"identifier":"13.1","token":"13.1","url":"\/13.1\/","edition_id":1,"permalink":0,"preferred":1}}],"structure_contents":[{"id":73586,"structure_id":15323,"section_number":"13.1-557","catch_line":"Short title","url":"\/13.1-557\/","token":"13.1\/8\/13.1-557","metadata":false},{"id":61843,"structure_id":15323,"section_number":"13.1-558","catch_line":"Policy of the Commonwealth","url":"\/13.1-558\/","token":"13.1\/8\/13.1-558","metadata":false},{"id":74631,"structure_id":15323,"section_number":"13.1-559","catch_line":"Definitions; applicability of chapter","url":"\/13.1-559\/","token":"13.1\/8\/13.1-559","metadata":false},{"id":82599,"structure_id":15323,"section_number":"13.1-560","catch_line":"Registration required","url":"\/13.1-560\/","token":"13.1\/8\/13.1-560","metadata":false},{"id":81742,"structure_id":15323,"section_number":"13.1-561","catch_line":"Procedure for registration; bond; renewal; fee","url":"\/13.1-561\/","token":"13.1\/8\/13.1-561","metadata":false},{"id":73116,"structure_id":15323,"section_number":"13.1-561.1","catch_line":"Fees to cover expense of regulation","url":"\/13.1-561.1\/","token":"13.1\/8\/13.1-561.1","metadata":false},{"id":73535,"structure_id":15323,"section_number":"13.1-562","catch_line":"Revocation of or refusal to renew registration","url":"\/13.1-562\/","token":"13.1\/8\/13.1-562","metadata":false},{"id":87113,"structure_id":15323,"section_number":"13.1-563","catch_line":"Unlawful offers","url":"\/13.1-563\/","token":"13.1\/8\/13.1-563","metadata":false},{"id":59406,"structure_id":15323,"section_number":"13.1-564","catch_line":"Unlawful cancellation of franchise; undue influence","url":"\/13.1-564\/","token":"13.1\/8\/13.1-564","metadata":false},{"id":73406,"structure_id":15323,"section_number":"13.1-565","catch_line":"Voidable franchises","url":"\/13.1-565\/","token":"13.1\/8\/13.1-565","metadata":false},{"id":86515,"structure_id":15323,"section_number":"13.1-566","catch_line":"Service of process on nonresident franchisor","url":"\/13.1-566\/","token":"13.1\/8\/13.1-566","metadata":false},{"id":83647,"structure_id":15323,"section_number":"13.1-567","catch_line":"Investigations; confidentiality of information and documents","url":"\/13.1-567\/","token":"13.1\/8\/13.1-567","metadata":false},{"id":58344,"structure_id":15323,"section_number":"13.1-568","catch_line":"Injunctions","url":"\/13.1-568\/","token":"13.1\/8\/13.1-568","metadata":false},{"id":79184,"structure_id":15323,"section_number":"13.1-569","catch_line":"Crimes","url":"\/13.1-569\/","token":"13.1\/8\/13.1-569","metadata":false},{"id":61728,"structure_id":15323,"section_number":"13.1-569.1","catch_line":"Commission may transmit record or complaint to locality where violation occurred","url":"\/13.1-569.1\/","token":"13.1\/8\/13.1-569.1","metadata":false},{"id":73285,"structure_id":15323,"section_number":"13.1-570","catch_line":"Violations punishable by Commission","url":"\/13.1-570\/","token":"13.1\/8\/13.1-570","metadata":false},{"id":76507,"structure_id":15323,"section_number":"13.1-571","catch_line":"Civil remedies","url":"\/13.1-571\/","token":"13.1\/8\/13.1-571","metadata":false},{"id":63100,"structure_id":15323,"section_number":"13.1-572","catch_line":"Rules and forms","url":"\/13.1-572\/","token":"13.1\/8\/13.1-572","metadata":false},{"id":72781,"structure_id":15323,"section_number":"13.1-573","catch_line":"Certain records of Commission available to public; admissibility of copies; destruction","url":"\/13.1-573\/","token":"13.1\/8\/13.1-573","metadata":false},{"id":70040,"structure_id":15323,"section_number":"13.1-574","catch_line":"Effective date","url":"\/13.1-574\/","token":"13.1\/8\/13.1-574","metadata":false}],"previous_section":{"id":61843,"structure_id":15323,"section_number":"13.1-558","catch_line":"Policy of the Commonwealth","url":"\/13.1-558\/","token":"13.1\/8\/13.1-558","metadata":false},"next_section":{"id":82599,"structure_id":15323,"section_number":"13.1-560","catch_line":"Registration required","url":"\/13.1-560\/","token":"13.1\/8\/13.1-560","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/13.1-559\/","history_text":"

This law was first created in 1972. The record of its establishment is cataloged in chapter 561 of that year\u2019s edition of \u201cActs of Assembly,\u201d the annual state publication listing all changes made to the Code of Virginia in that year. Unfortunately, the 1972 \u201cActs\u201d aren\u2019t available online. It has been modified 5 times. Those modifications are cataloged by \u201cThe Acts of Assembly,\u201d a state publication, by year and chapter. Those modifications that can be read on the General Assembly\u2019s website will be linked accordingly. Those modifications are as follows: in 1978, chapter 670; in 1990, chapter 420; in 1991, chapter 475; in 2007, chapter 668<\/a>; in 2009, chapter 148<\/a>.<\/p>","references":[{"id":59290,"section_number":"59.1-263","catch_line":"Definitions","order_by":null,"url":"\/59.1-263\/"}],"refers_to":false,"permalink":{"id":150091,"object_type":"law","relational_id":74631,"identifier":"13.1-559","token":"13.1\/8\/13.1-559","url":"\/13.1-559\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/13.1-559\/","token":"13.1\/8\/13.1-559","dublin_core":{"Title":"Definitions; applicability of chapter","Type":"Text","Format":"text\/html","Identifier":"\u00a7 13.1-559","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> As used in this chapter, unless the context otherwise requires:\n\t\t\t“Commission<\/span>” means the State Corporation Commission<\/span>.\n\t\t\t“Controlling person<\/span>” means a natural person who is an officer, director, or partner, or who occupies a similar status or performs a similar function, of a franchisor<\/span> organized as a corporation, partnership, or other entity, or any person who possesses, directly or indirectly, the power to direct or cause the direction of the management and policies of a franchisor<\/span>, whether through the ownership of voting securities, by contract<\/span>, or otherwise.\n\t\t\t“Franchise<\/span>” means a written contract<\/span> or agreement between two or more persons, by which: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> A franchisee<\/span> is granted the right to engage in the business of offering, selling or distributing goods or services at retail under a marketing plan or system prescribed in substantial part by a franchisor<\/span>; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> The operation of the franchisee<\/span>’s business pursuant to such plan or system is substantially associated with the franchisor<\/span>’s trademark, service mark, trade name, logotype, advertising or other commercial symbol designating the franchisor<\/span> or its affiliate; and <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> The franchisee<\/span> is required to pay, directly or indirectly, a franchise fee<\/span> of $500 or more.\n\t\t\t\t“Franchise fee<\/span>” means a fee or charge for the right to enter into or maintain a business under a franchise, including a payment or deposit for goods, services, rights, or training, but not including: (i) the payment of a bona fide wholesale price for starting and continuing inventory of goods for resale or (ii) the payment at fair market value for the purchase or lease of real property, fixtures, equipment, or supplies necessary to enter into or maintain the business.\n\t\t\t\t“Franchisee<\/span>” means a person to whom a franchise is granted or sold.\n\t\t\t\t“Franchisor<\/span>” means a person, including a subfranchisor<\/span>, who grants or sells<\/span>, or offers<\/span> to grant or sell, a franchise.\n\t\t\t\t“Offer” or “offer to sell<\/span>” includes every attempt to offer to dispose of or grant, and every solicitation of an offer to buy, a franchise or an interest in a franchise for value.\n\t\t\t\t“Place of business<\/span>” means a building or portion thereof from which the goods or services authorized by the franchise are sold or offered for sale<\/span> in person by the franchisee<\/span> or employees or agents of the franchisee<\/span>, or a truck or van used in the sale<\/span> of such goods which is of a type designated by the franchisor<\/span> and is equipped and marked in conformance with requirements of the franchisor<\/span>.\n\t\t\t\t“Preopening obligations<\/span>” means the franchisor<\/span>’s obligations to provide to the franchisee<\/span>, prior to the opening of the franchisee<\/span>’s business, real estate, improvements, equipment, inventory, training, or other items to be included in the offering.\n\t\t\t\t“Sale<\/span>” or “sell” includes every contract<\/span> or agreement of sale<\/span> or grant of, contract<\/span> to sell, or disposition<\/span> of a franchise or interest in a franchise for value.\n\t\t\t\t“Subfranchisor<\/span>” means a person who is authorized by a franchisor<\/span> to grant a franchise within a particular geographic region. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> This chapter shall apply only to a franchise the performance of which contemplates or requires the franchisee<\/span> to establish or maintain a place of business<\/span> within the Commonwealth of Virginia.\n\t\t\tA franchise does not include a contract<\/span> or agreement by which a retailer of goods or services is granted the right either (i) to utilize a marketing plan or system to promote the sale<\/span> or distribution of goods or services which are incidental and ancillary to the principal business of the retailer (sales<\/span> under such a plan or system accounting for less than 20 percent of the retailer’s gross sales<\/span> being deemed incidental and ancillary); or (ii) to sell goods or services within, or appurtenant to, a retail business establishment as a department or division thereof provided such retailer is not required to purchase such goods or services from the operator of such establishment. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nDEFINITIONS; APPLICABILITY OF CHAPTER (\u00a7 13.1-559)\n\nA. As used in this chapter, unless the context otherwise requires:\n\t\t\t“Commission” means the State Corporation Commission.\n\t\t\t“Controlling person” means a natural person who is an officer,\ndirector, or partner, or who occupies a similar status or performs a similar\nfunction, of a franchisor organized as a corporation, partnership, or other\nentity, or any person who possesses, directly or indirectly, the power to direct\nor cause the direction of the management and policies of a franchisor, whether\nthrough the ownership of voting securities, by contract, or otherwise.\n\t\t\t“Franchise” means a written contract or agreement between two or\nmore persons, by which:\n\n 1. A franchisee is granted the right to engage in the business of offering,\n selling or distributing goods or services at retail under a marketing plan or\n system prescribed in substantial part by a franchisor;\n\n 2. The operation of the franchisee’s business pursuant to such plan or\n system is substantially associated with the franchisor’s trademark,\n service mark, trade name, logotype, advertising or other commercial symbol\n designating the franchisor or its affiliate; and\n\n 3. The franchisee is required to pay, directly or indirectly, a franchise fee\n of $500 or more.\n \t\t\t\t“Franchise fee” means a fee or charge for the right to enter\n into or maintain a business under a franchise, including a payment or deposit\n for goods, services, rights, or training, but not including: (i) the payment\n of a bona fide wholesale price for starting and continuing inventory of goods\n for resale or (ii) the payment at fair market value for the purchase or lease\n of real property, fixtures, equipment, or supplies necessary to enter into or\n maintain the business.\n \t\t\t\t“Franchisee” means a person to whom a franchise is granted or\n sold.\n \t\t\t\t“Franchisor” means a person, including a subfranchisor, who\n grants or sells, or offers to grant or sell, a franchise.\n \t\t\t\t“Offer” or “offer to sell” includes every attempt\n to offer to dispose of or grant, and every solicitation of an offer to buy, a\n franchise or an interest in a franchise for value.\n \t\t\t\t“Place of business” means a building or portion thereof from\n which the goods or services authorized by the franchise are sold or offered\n for sale in person by the franchisee or employees or agents of the franchisee,\n or a truck or van used in the sale of such goods which is of a type designated\n by the franchisor and is equipped and marked in conformance with requirements\n of the franchisor.\n \t\t\t\t“Preopening obligations” means the franchisor’s\n obligations to provide to the franchisee, prior to the opening of the\n franchisee’s business, real estate, improvements, equipment, inventory,\n training, or other items to be included in the offering.\n \t\t\t\t“Sale” or “sell” includes every contract or\n agreement of sale or grant of, contract to sell, or disposition of a franchise\n or interest in a franchise for value.\n \t\t\t\t“Subfranchisor” means a person who is authorized by a\n franchisor to grant a franchise within a particular geographic region.\n\nB. This chapter shall apply only to a franchise the performance of which\ncontemplates or requires the franchisee to establish or maintain a place of\nbusiness within the Commonwealth of Virginia.\n\t\t\tA franchise does not include a contract or agreement by which a retailer of\ngoods or services is granted the right either (i) to utilize a marketing plan or\nsystem to promote the sale or distribution of goods or services which are\nincidental and ancillary to the principal business of the retailer (sales under\nsuch a plan or system accounting for less than 20 percent of the\nretailer’s gross sales being deemed incidental and ancillary); or (ii) to\nsell goods or services within, or appurtenant to, a retail business\nestablishment as a department or division thereof provided such retailer is not\nrequired to purchase such goods or services from the operator of such\nestablishment.\n\nHISTORY: 1972, c. 561; 1978, c. 670; 1990, c. 420; 1991, c. 475; 2007, c. 668;\n2009, c. 148.","edition":{"id":1,"name":"2025","slug":"2025","date_created":"2026-06-21 22:39:22","date_modified":"2026-06-21 22:39:22","current":1,"order_by":1,"last_import":null}}