#100: Virginia Just Banned Franchise Non-Competes (What Franchisors Must Do Now)

Starting July 1, 2026, Virginia fundamentally changes franchising.In this video, we break down the new amendment to the Virginia Retail Franchising Act and what it means for franchisors, franchisees, and franchise system protection.Under the new law, franchisors can no longer include post-termination non-compete provisions in franchise agreements. That means franchisees may be able to operate competing businesses after expiration or termination, reshaping the core dynamics of franchising.We walk through:- When the law applies (July 1, 2026 and after)- Which agreements are grandfathered- The limited exception for business sales- The prohibition on settlement-based restrictive covenants- How this impacts franchise agreements and FDD disclosures- Why franchisors must rethink brand protection and system controlsThe statute makes it unlawful to restrict a franchisee from engaging in the same business after termination or expiration of a franchise agreement, with limited exceptions.This is not just a legal update, it’s a structural shift in the franchisor-franchisee relationship.If you are a franchisor, now is the time to:- Amend your franchise agreements- Update your Virginia addendum and disclosures- Reevaluate how your system protects itself- Consider how existing franchisees may be impacted by new competitionFor guidance on how this applies to your franchise system, contact our team.#FranchiseLaw#NonCompete#Franchising#VirginiaLaw#FranchiseBusiness#FDD#FranchiseAgreement#BusinessLaw#FranchiseGrowth#Entrepreneurship