When applying for a manufacturer or distributor license, you must include a copy of the franchise or sales, service, or sales/service agreement (franchise agreement) that will be offered to a motor vehicle dealer in the Commonwealth of Virginia. The franchise agreement will be reviewed to ensure that it does not contain terms inconsistent with the provisions of the franchise laws contained in Title 46.2, Chapter 19 of the Code of Virginia (please refer to Va. Code §§ 46.2-1973 through 46.2-1982).
If your company is located in Virginia, you must have office space of at least 250 square feet. In addition, the location must be inspected by a DMV Special Agent from DMV Investigative Services.
Additional Franchise Agreement Information
- A copy of each new, amended, modified, or different form of franchise agreement or addendum to the agreement must be filed with the Department of Motor Vehicles (DMV) for review at least sixty days prior to offering the franchise to Virginia motor vehicle dealers. At that time, the manufacturer or distributor must also give written notice and a copy of the document(s) to affected dealers in the Commonwealth. (Va. Code § 46.2-1973)
- The franchise or sales agreement must include any warranty provisions and a sixty-day franchise cancellation clause. Exceptions to the sixty-day notification clause are found in Va. Code § 46.2-1976(6).
- The distributor must be furnished with a written agreement from the manufacturer or parent distributor.
- All Franchisers must include in any agreement (or an addendum to the agreement) with a motor vehicle dealer in the Commonwealth the following language: "If any provision herein contravenes the laws or regulations of any state or other jurisdiction wherein this agreement is to be performed, or denies access to the procedures, forums, or remedies provided for by such laws or regulations, such provision shall be deemed to be modified to conform to such laws or regulations, and all other terms and provisions shall remain in full force and effect, or words to that effect." (Va. Code § 46.2-1992.76(13))