HB2786: Retail Franchising Act; requirement of SCC for franchise registration.

Chief Patron

Del. Johnny Joannou (D-79)

Johnny Joannou (D-79)
Portsmouth, VA
Served: 1998–

Progress

	Introduced
	Passed Committee
	Passed House
	Passed Senate
	Signed by Governor
	Became Law

Status

03/20/2007: signed by governor

View Entire History

Summary

Retail Franchising Act.  Authorizes the State Corporation Commission to require, as a condition of franchise registration, that the franchise fees and other funds paid by a franchisee to the franchisor be escrowed or deferred until the franchisor's preopening obligations are fulfilled, if the liabilities of the franchisor or any controlling person exceed the franchisor's liabilities. The measure also clarifies that it is not unlawful for a person to grant an unregistered franchise if the franchise is exempted from registration by the Commission by rule or order.