                                 CODE OF VIRGINIA

REVOCATION OF OR REFUSAL TO RENEW REGISTRATION (§ 13.1-562)

A. The Commission may, by order entered after a hearing on notice duly served on
the defendant not less than thirty days before the date of the hearing, revoke
the effectiveness of a franchise registration (or refuse to renew a registration
if an application for renewal has been or is to be filed) if it finds that such
an order is in the public interest or that the franchisor or any controlling
person of the franchisor:

   1. Has engaged in any fraudulent transaction;

   2. Is insolvent, or in danger of becoming insolvent, either (i) in the sense
   that his liabilities exceed his assets or (ii) in the sense that he cannot
   meet his obligations as they mature;

   3. Is a person for whom a conservator or guardian has been appointed and is
   acting;

   4. Has been convicted, within or without this Commonwealth, of any misdemeanor
   involving a franchise, or any felony;

   5. Has failed to furnish information requested by the Commission concerning
   the conduct of his business; or

   6. Has violated any of the provisions of this chapter.

B. If it appears to the Commission that it is in the public interest and that
there exists one or more of the grounds enumerated in subdivisions (1) through
(6) of subsection A of this section, the Commission may so notify the
franchisor. The franchisor shall have seven business days from the date of the
written notice from the Commission within which to file a written response to
the matters addressed in the notice. If (i) the Commission notified, or
reasonably attempted to notify, the franchisor in writing, (ii) it appears to be
in the public interest, and (iii) either the Commission, after consideration of
the franchisor&#8217;s response, reasonably believes the ground or grounds exist
or a response is not filed in a timely manner, the Commission may summarily
enter an order suspending the effectiveness of the franchisor&#8217;s
registration pending final determination of any proceeding under this section.
The Commission shall promptly send a copy of the suspension order to the
franchisor and each of its subfranchisors, if any are known to the Commission.
At a minimum, the order shall set forth the basis for the suspension as well as
the franchisor&#8217;s or subfranchisor&#8217;s right to file a written request
for a hearing within twenty-one days after the date of entry of the order. If a
hearing is requested in a timely manner, the Commission, after notice and an
opportunity for a hearing as soon as practicable, may modify or vacate the
suspension order or continue it in effect until final determination of the
proceeding under this section. If a hearing is not requested in a timely manner,
the suspension order shall remain in effect until it is modified or vacated by
the Commission.

HISTORY: 1972, c. 561; 1978, c. 670; 1991, c. 475; 1997, c. 921; 2007, c. 668.