21 Va. Admin. Code § 5-110-50

Current through Register Vol. 41, No. 10, December 30, 2024

Section 21VAC5-110-50 - Expiration; application to renew the registration; interim financial statements

A. A franchise registration expires at midnight on the annual date of the registration's effectiveness. An application to renew the franchise registration should be filed 30 days prior to the expiration date in order to prevent a lapse of registration under the Virginia statute.

B. An application for renewal of a franchise registration is made by submitting the following completed forms and other material:

1. Uniform Franchise Registration Application page, Form A;

2. Updated Franchise Disclosure Document;

3. One complete copy of the amended Franchise Disclosure Document black-lined to show all additions, deletions, and other changes, using no margin balloons or color highlights;

4. Application fee payable to the "Treasurer of Virginia"; and

5. Certification of Deferred Franchise Fee, Form L, if applicable.

C. An application for renewal of a franchise registration shall be submitted either electronically using a method specified by the commission or by delivering a copy of the application on a CD-ROM in PDF format or on other electronic media approved by the Division of Securities and Retail Franchising. Electronic versions of the application for renewal, including the updated Franchise Disclosure Document, shall be text searchable.

D. For good cause shown and at its discretion, the commission may allow for submission of an application for renewal by a method of communication other than electronic filing or on electronic media as required in subsection C of this section. Such delivery may only occur after the applicant has received prior approval from the commission. The commission will determine the policy and procedure used to accept and process an application under such a request.

E. If the commission's review of the application results in any revision to the documents submitted, the franchisor shall file a complete clean copy of the revised Franchise Disclosure Document and any other revised documents and a black-lined copy of all revised pages, unless the commission directs otherwise. The filing shall be submitted in a manner as required by subsection C of this section.

F. If the date of the most recent audited financial statements in the Franchise Disclosure Document precedes the date of the application by more than 120 days, the Franchise Disclosure Document shall also include the following financial statements prepared in accordance with generally accepted accounting principles:

1. An unaudited interim balance sheet as of a date within 120 days of the date of the application; and

2. An unaudited interim statement of income or operations for the period from the most recent audited financial statements to the date of the interim balance sheet.

G. The certifications made by or on behalf of the franchisor in Form A shall extend and apply to all documents and materials filed in connection with the renewal application, including any documents or materials submitted to the commission subsequent to the initial filing that may be required to complete the renewal application.

21 Va. Admin. Code § 5-110-50

Derived from Case No. SEC950020 §5, eff. July 1, 1995; amended, Virginia Register Volume 15, Issue 22, eff. July 1, 1999; Volume 24, Issue 21, eff. July 1, 2008; Volume 25 Issue 22, eff. July 1, 2009; Volume 26, Issue 21, eff. July 1, 2010; Volume 29, Issue 14, eff. March 1, 2013; Amended, Virginia Register Volume 41, Issue 10, eff. 1/1/2025.

Statutory Authority: §§ 12.1-13 and 13.1-572 of the Code of Virginia.