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News Briefs

By ALM Staff | Law Journal Newsletters |
June 28, 2007

Virginia Franchise Law Moves Toward Uniformity with Other Registration States

New laws scheduled at FBLA's press time to take effect on July 1, 2007 bring Virginia's Retail Franchising Act closer to conformity with laws in other franchise registration states.

'Virginia had a good reputation for its franchise regulations,' said Steven Maxey, the former director of the Securities and Retail Franchising Division of the Virginia State Corporation Commission, which writes rules for franchisors and reviews franchise applications. 'But we were very particular about the financial strength of franchisors seeking to register in the state. We turned down about 20% of franchisor applications ' which is a high number ' and it almost always was because of the finances of the applicant.'

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