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<law><site_title>Virginia Decoded</site_title><site_url>https://vacode.org</site_url><law_id>372811</law_id><section_number>59.1-21.11</section_number><catch_line>Required provisions pertaining to agreements between refiners and dealers</catch_line><edition url="https://vacode.org/2026/" slug="2026" current="TRUE" last_updated="2026-08-02">2026</edition><referred_to_by><reference>59.1-21.12</reference></referred_to_by><structure><unit label="title" level="1" order_by="127" identifier="59.1">Trade and Commerce</unit><unit label="chapter" level="2" order_by="5" identifier="2.2">Virginia Petroleum Products Franchise Act</unit></structure><text>
						<section><p>Every agreement between a <span class="dictionary">refiner</span> and a <span class="dictionary">dealer</span> shall be subject to the following provisions, whether or not expressly set forth therein:</p></section>
						<section id="1"><p><span class="prefix-number">1.</span> The <span class="dictionary">dealer</span> shall not be required to keep his <span class="dictionary">retail</span> outlet open for business for more than sixteen consecutive hours per day, nor more than six days per week. This subdivision shall not be construed to prevent any <span class="dictionary">retail</span> outlet being open when required to be open to conform to any local, state or federal <span class="dictionary">law</span> or regulation, nor shall this subdivision be construed to prevent any <span class="dictionary">retail</span> outlet from being open for business for more than sixteen consecutive hours per day or more than six days per week when the <span class="dictionary">dealer</span> determines that market conditions warrant such operation. This subdivision shall not apply to <span class="dictionary">retail</span> outlets which participate in the travel services signing program of the Virginia Department of Transportation. <a id="paragraph-1390339" class="section-permalink" href="https://vacode.org/59.1-21.11/#1"><i class="fa fa-link"/></a></p></section>
						<section id="2"><p><span class="prefix-number">2.</span> The right of either <span class="dictionary">party</span> to <span class="dictionary">trial</span> by <span class="dictionary">jury</span> or to the interposition of <span class="dictionary">counterclaims</span> or cross claims shall not be waived. <a id="paragraph-1390340" class="section-permalink" href="https://vacode.org/59.1-21.11/#2"><i class="fa fa-link"/></a></p></section>
						<section id="3"><p><span class="prefix-number">3.</span> In the absence of any express agreement, the <span class="dictionary">dealer</span> shall not be required to participate financially in the use of any premium, coupon, give-away, or rebate in the <span class="dictionary">operation of a retail outlet</span>. The <span class="dictionary">refiner</span> may require the <span class="dictionary">dealer</span> to distribute to customers premiums, coupons, or give-aways which are furnished to the <span class="dictionary">dealer</span> at the expense of the <span class="dictionary">refiner</span>. <a id="paragraph-1390341" class="section-permalink" href="https://vacode.org/59.1-21.11/#3"><i class="fa fa-link"/></a></p></section>
						<section id="4"><p><span class="prefix-number">4.</span> No agreement or franchise subject to the provisions of this chapter shall limit, restrict, or impair the number of retail outlets which an individual <span class="dictionary">dealer</span> may operate for the same <span class="dictionary">refiner</span>, nor may any agreement or franchise establish working hours for the <span class="dictionary">dealer</span>. However, an agreement or franchise may require the <span class="dictionary">dealer</span> to be involved in the operation of the business of the <span class="dictionary">dealer</span>&#x2019;s retail outlet or retail outlets for not more than an average of sixty hours per month. Notwithstanding the provisions of this subdivision, a <span class="dictionary">refiner</span> may impose a requirement in a <span class="dictionary">trial franchise</span> only, that a <span class="dictionary">dealer</span> be on the marketing premises of the <span class="dictionary">dealer</span>&#x2019;s retail outlet or retail outlets for a reasonable number of hours per week not to exceed twenty hours per week. <a id="paragraph-1390342" class="section-permalink" href="https://vacode.org/59.1-21.11/#4"><i class="fa fa-link"/></a></p></section>
						<section id="5"><p><span class="prefix-number">5.</span> No transfer or assignment of a franchise by a <span class="dictionary">dealer</span> to a qualified transferee or assignee shall be unreasonably disapproved by the <span class="dictionary">refiner</span>. A <span class="dictionary">refiner</span> shall have forty-five days, after the date of submission by a proposed transferee or assignee of all personal and financial information required by the <span class="dictionary">refiner</span>&#x2019;s reasonable and uniform standards, within which to notify a <span class="dictionary">dealer</span> in writing that a proposed transferee or assignee meets or fails to meet the <span class="dictionary">refiner</span>&#x2019;s reasonable and uniform qualifications. If the proposed transferee or assignee fails to meet the <span class="dictionary">refiner</span>&#x2019;s reasonable and normal qualifications, the notice to the <span class="dictionary">dealer</span> shall state with specificity the reasons for such failure. <a id="paragraph-1390343" class="section-permalink" href="https://vacode.org/59.1-21.11/#5"><i class="fa fa-link"/></a></p></section>
						<section id="6"><p><span class="prefix-number">6.</span> The term of the initial agreement between the <span class="dictionary">refiner</span> and the <span class="dictionary">dealer</span> relating to specific marketing premises shall not be less than one year; the term of all subsequent agreements between the <span class="dictionary">refiner</span> and the <span class="dictionary">dealer</span>, relating to the same marketing premises, shall not be for less than three years. The rental provisions in any such agreement or franchise shall be based on commercially fair and reasonable standards, uniformly applied to all similarly situated <span class="dictionary">dealers</span> of the same <span class="dictionary">refiner</span> in the same geographic area. <a id="paragraph-1390344" class="section-permalink" href="https://vacode.org/59.1-21.11/#6"><i class="fa fa-link"/></a></p></section>
						<section id="7"><p><span class="prefix-number">7.</span> A <span class="dictionary">refiner</span> may require a <span class="dictionary">dealer</span> to pay a fee or charge for the <span class="dictionary">privilege</span> of honoring a credit card issued by the <span class="dictionary">refiner</span> and used by customers of the <span class="dictionary">dealer</span> in purchasing at retail products and services at retail outlets which bear the brand name or trademark of the <span class="dictionary">refiner</span> only if such <span class="dictionary">refiner</span> has deducted the cost of extending retail credit from the tankwagon price charged <span class="dictionary">dealers</span>, has notified the <span class="dictionary">dealer</span> in writing of such deduction and such fee is a part of a program designed (i) to induce retail purchases for cash or (ii) to separate the cost of extending retail credit from the tankwagon price paid by the <span class="dictionary">dealer</span>. The amount of any such fee or charge shall be directly related to the actual cost incurred by the <span class="dictionary">refiner</span> in the extension of retail credit. Notwithstanding the provisions of subsection A of &#xA7; <a class="law" title="Civil action for violation of chapter" href="/59.1-21.12/">59.1-21.12</a>, any <span class="dictionary">refiner</span> who violates the provisions of this subdivision shall be civilly liable for <span class="dictionary">damages</span> in treble the amount of the <span class="dictionary">damages</span> sustained by the complaining <span class="dictionary">party</span> as a result of the violation. <a id="paragraph-1390345" class="section-permalink" href="https://vacode.org/59.1-21.11/#7"><i class="fa fa-link"/></a></p></section>
						<section id="8"><p><span class="prefix-number">8.</span> A <span class="dictionary">dealer</span> shall have the right, effective upon his death, permanent and total disability, or retirement, to have his interests under a <span class="dictionary">franchise agreement</span> with a <span class="dictionary">refiner</span> assigned to a <span class="dictionary">designated family member</span> who has been approved by the <span class="dictionary">refiner</span> in accordance with the <span class="dictionary">refiner</span>&#x2019;s reasonable and uniform standards for personal and financial condition unless the <span class="dictionary">refiner</span> shows that the <span class="dictionary">designated family member</span> no longer meets the reasonable and uniform standards at the time of the previous approval. All <span class="dictionary">franchise agreements</span> shall contain a provision identifying the <span class="dictionary">designated family member</span> who is entitled to succeed to the interests of the <span class="dictionary">dealer</span> under the agreement upon his death, permanent and total disability, or retirement. The foregoing shall not prohibit a <span class="dictionary">refiner</span> from requiring that the <span class="dictionary">designated family member</span> accept a <span class="dictionary">trial franchise</span> within twenty-one days of the <span class="dictionary">dealer</span>&#x2019;s death, permanent and total disability, or retirement and that the <span class="dictionary">designated family member</span> attend a training program offered by the <span class="dictionary">refiner</span>.
			A <span class="dictionary">dealer</span> and the <span class="dictionary">refiner</span> may mutually agree to change the <span class="dictionary">designated family member</span> entitled to succeed to the <span class="dictionary">dealer</span>&#x2019;s interests under a <span class="dictionary">franchise agreement</span>. The <span class="dictionary">designated family member</span> shall provide, upon the request of the <span class="dictionary">refiner</span>, personal and financial information that is reasonably necessary to determine whether the succession should be honored. The <span class="dictionary">refiner</span> shall not be obligated to accept a <span class="dictionary">designated family member</span> under this subdivision who does not meet the reasonable and uniform standards uniformly imposed by the <span class="dictionary">refiner</span>; however, any refusal to accept the <span class="dictionary">designated family member</span> as a successor <span class="dictionary">dealer</span> shall be given by the <span class="dictionary">refiner</span> in writing to the <span class="dictionary">dealer</span>, not later than ninety days after the date of the designation of the <span class="dictionary">designated family member</span> by the <span class="dictionary">dealer</span>, and shall state with specificity the reasons for such refusal. <a id="paragraph-1390346" class="section-permalink" href="https://vacode.org/59.1-21.11/#8"><i class="fa fa-link"/></a></p></section>
						<section id="9"><p><span class="prefix-number">9.</span> a. No <span class="dictionary">refiner</span> shall condition approval of an assignment, transfer, sale, or renewal of a <span class="dictionary">franchise agreement</span> on the payment by the <span class="dictionary">dealer</span>, or the proposed successor <span class="dictionary">dealer</span>, of a <span class="dictionary">franchise fee</span> or <span class="dictionary">penalty</span> unless the assignment, transfer, or sale is of a <span class="dictionary">franchise agreement</span> covering a new or <span class="dictionary">newly remodeled facility</span>.
			b. A <span class="dictionary">refiner</span> may require a <span class="dictionary">dealer</span> to pay a <span class="dictionary">franchise fee</span> or <span class="dictionary">penalty</span>, as hereinafter provided, upon the assignment, transfer, or sale of a <span class="dictionary">franchise agreement</span> covering a new facility within the first three years of the initial term of the <span class="dictionary">franchise agreement</span>, or upon the assignment, transfer or sale of a <span class="dictionary">franchise agreement</span> covering a <span class="dictionary">newly remodeled facility</span> within the first three years after the completion of the remodeling: <a id="paragraph-1390347" class="section-permalink" href="https://vacode.org/59.1-21.11/#9"><i class="fa fa-link"/></a></p></section>
						<section id="91" class="indent-1"><p><span class="prefix-number">1.</span> An amount not to exceed sixty percent of the <span class="dictionary">profit</span> realized by the <span class="dictionary">dealer</span> if the assignment, transfer, or sale takes place within the first twelve-month period. <a id="paragraph-1390348" class="section-permalink" href="https://vacode.org/59.1-21.11/#91"><i class="fa fa-link"/></a></p></section>
						<section id="92" class="indent-1"><p><span class="prefix-number">2.</span> An amount not to exceed twenty-five percent of the <span class="dictionary">profit</span> realized by the <span class="dictionary">dealer</span> if the assignment, transfer, or sale takes place within the second twelve-month period. <a id="paragraph-1390349" class="section-permalink" href="https://vacode.org/59.1-21.11/#92"><i class="fa fa-link"/></a></p></section>
						<section id="93" class="indent-1"><p><span class="prefix-number">3.</span> An amount not to exceed ten percent of the <span class="dictionary">profit</span> realized by the <span class="dictionary">dealer</span> if the assignment, transfer, or sale takes place within the third twelve-month period.
				c. Nothing in this section shall authorize a <span class="dictionary">refiner</span> to impose a <span class="dictionary">franchise fee</span> or <span class="dictionary">penalty</span> upon an assignment, transfer, or sale to a family member pursuant to subdivision 8 of this section.<br/><br/>				d. In the case of a new facility, a <span class="dictionary">franchise fee</span> may be charged at the time the first <span class="dictionary">franchise agreement</span> is entered into. <a id="paragraph-1390350" class="section-permalink" href="https://vacode.org/59.1-21.11/#93"><i class="fa fa-link"/></a></p></section>
						<section id="10"><p><span class="prefix-number">10.</span> Any provision in any agreement or franchise purporting to <span class="dictionary">waive</span> any right or remedy under this chapter or any applicable provisions of the Petroleum Marketing Practices Act (15 U.S.C. &#xA7; 2802 et seq.) shall be null and void. <a id="paragraph-1390351" class="section-permalink" href="https://vacode.org/59.1-21.11/#10"><i class="fa fa-link"/></a></p></section></text><history>1973, c. 423; 1979, c. 306; 1982, c. 350; 1985, c. 498; 1987, c. 535; 1990, c. 907; 1991, c. 199.</history><metadata></metadata></law>
