CODE OF VIRGINIA

PROCEDURE FOR REGISTRATION; BOND; RENEWAL; FEE (§ 13.1-561)

A. A franchise may be registered after filing with the Commission an application
containing such relevant information as the Commission may require. The
franchise shall be registered if the Commission finds that the franchisor,
including any controlling person of the franchisor, is a person of good
character and reputation and that all information required of the applicant by
the Commission has been supplied, that none of the grounds for revocation
enumerated in § 13.1-562 are applicable to the franchise, and that the required
fee has been paid.

B. The Commission may require, as a condition of registration or renewal of
registration: (i) the escrow or deferral of franchise fees and other funds paid
by the franchisee to the franchisor until the franchisor’s preopening
obligations are fulfilled, if the grounds enumerated in clause (i) of
subdivision A 2 of § 13.1-562 exist, or (ii) the filing by a franchisor of a
surety bond conditioned upon the payment of all criminal and civil penalties
provided in this chapter in an amount determined by the Commission to be
adequate to protect the public and all franchisees of the franchisor, taking
into proper account the marketing plan or system to be franchised, the goods or
services to be offered, whether or not the franchisor has a regular place of
business in this Commonwealth, and any other facts indicating the necessary
amount of the bond.

C. The Commission shall by rule or order prescribe the procedures for filing an
application for exemption, amendments to the exemption, and when an exemption or
renewal becomes effective.

D. All registrations, exemptions and renewals thereof shall expire at midnight
on the annual date of their effectiveness. However, the Commission may extend
such expiration of an exemption as much as 45 days.

E. Each application for the registration or exemption of a franchise shall be
accompanied by a fee of $ 500, payable to the Treasurer of Virginia. Each
application for the renewal of a franchise registration or exemption, including
any amendments to the registration or exemption application which accompany or
are part of the application for renewal, shall be accompanied by a fee of $ 250
payable to the Treasurer of Virginia. Unless submitted in connection with an
application for renewal, each amendment or group of amendments to a registration
or exemption application submitted after the application has been granted shall
be accompanied by a fee of $ 100, payable to the Treasurer of Virginia. If the
application for registration, exemption or renewal is withdrawn or is not
granted, or if the registration or exemption application is not amended, the fee
shall not be returnable.

F. For the purposes of registration, exemption or renewal of registration of a
franchise, a partnership shall be treated as the same partnership so long as two
or more members of the partnership named in the application continue the
business without change of location, and if the partnership, within one month
after a change in the partnership, files with the Commission a copy of a
certificate filed in compliance with § 50-74.

HISTORY: 1972, c. 561; 1978, c. 670; 1991, c. 475; 1992, c. 158; 2007, c. 668.