§ 13.1-562. Revocation of or refusal to renew registration.
A. The Commission may, by order entered after a hearing on notice duly servedon the defendant not less than thirty days before the date of the hearing,revoke the effectiveness of a franchise registration (or refuse to renew aregistration if an application for renewal has been or is to be filed) if itfinds that such an order is in the public interest or that the franchisor orany controlling person of the franchisor:
1. Has engaged in any fraudulent transaction;
2. Is insolvent, or in danger of becoming insolvent, either (i) in the sensethat his liabilities exceed his assets or (ii) in the sense that he cannotmeet his obligations as they mature;
3. Is a person for whom a conservator or guardian has been appointed and isacting;
4. Has been convicted, within or without this Commonwealth, of anymisdemeanor involving a franchise, or any felony;
5. Has failed to furnish information requested by the Commission concerningthe conduct of his business; or
6. Has violated any of the provisions of this chapter.
B. If it appears to the Commission that it is in the public interest and thatthere exists one or more of the grounds enumerated in subdivisions (1)through (6) of subsection A of this section, the Commission may so notify thefranchisor. The franchisor shall have seven business days from the date ofthe written notice from the Commission within which to file a writtenresponse to the matters addressed in the notice. If (i) the Commissionnotified, or reasonably attempted to notify, the franchisor in writing, (ii)it appears to be in the public interest, and (iii) either the Commission,after consideration of the franchisor's response, reasonably believes theground or grounds exist or a response is not filed in a timely manner, theCommission may summarily enter an order suspending the effectiveness of thefranchisor's registration pending final determination of any proceeding underthis section. The Commission shall promptly send a copy of the suspensionorder to the franchisor and each of its subfranchisors, if any are known tothe Commission. At a minimum, the order shall set forth the basis for thesuspension as well as the franchisor's or subfranchisor's right to file awritten request for a hearing within twenty-one days after the date of entryof the order. If a hearing is requested in a timely manner, the Commission,after notice and an opportunity for a hearing as soon as practicable, maymodify or vacate the suspension order or continue it in effect until finaldetermination of the proceeding under this section. If a hearing is notrequested in a timely manner, the suspension order shall remain in effectuntil it is modified or vacated by the Commission.
(1972, c. 561; 1978, c. 670; 1991, c. 475; 1997, c. 921; 2007, c. 668.)
§ 13.1-562. Revocation of or refusal to renew registration.
A. The Commission may, by order entered after a hearing on notice duly servedon the defendant not less than thirty days before the date of the hearing,revoke the effectiveness of a franchise registration (or refuse to renew aregistration if an application for renewal has been or is to be filed) if itfinds that such an order is in the public interest or that the franchisor orany controlling person of the franchisor:
1. Has engaged in any fraudulent transaction;
2. Is insolvent, or in danger of becoming insolvent, either (i) in the sensethat his liabilities exceed his assets or (ii) in the sense that he cannotmeet his obligations as they mature;
3. Is a person for whom a conservator or guardian has been appointed and isacting;
4. Has been convicted, within or without this Commonwealth, of anymisdemeanor involving a franchise, or any felony;
5. Has failed to furnish information requested by the Commission concerningthe conduct of his business; or
6. Has violated any of the provisions of this chapter.
B. If it appears to the Commission that it is in the public interest and thatthere exists one or more of the grounds enumerated in subdivisions (1)through (6) of subsection A of this section, the Commission may so notify thefranchisor. The franchisor shall have seven business days from the date ofthe written notice from the Commission within which to file a writtenresponse to the matters addressed in the notice. If (i) the Commissionnotified, or reasonably attempted to notify, the franchisor in writing, (ii)it appears to be in the public interest, and (iii) either the Commission,after consideration of the franchisor's response, reasonably believes theground or grounds exist or a response is not filed in a timely manner, theCommission may summarily enter an order suspending the effectiveness of thefranchisor's registration pending final determination of any proceeding underthis section. The Commission shall promptly send a copy of the suspensionorder to the franchisor and each of its subfranchisors, if any are known tothe Commission. At a minimum, the order shall set forth the basis for thesuspension as well as the franchisor's or subfranchisor's right to file awritten request for a hearing within twenty-one days after the date of entryof the order. If a hearing is requested in a timely manner, the Commission,after notice and an opportunity for a hearing as soon as practicable, maymodify or vacate the suspension order or continue it in effect until finaldetermination of the proceeding under this section. If a hearing is notrequested in a timely manner, the suspension order shall remain in effectuntil it is modified or vacated by the Commission.
(1972, c. 561; 1978, c. 670; 1991, c. 475; 1997, c. 921; 2007, c. 668.)
§ 13.1-562. Revocation of or refusal to renew registration.
A. The Commission may, by order entered after a hearing on notice duly servedon the defendant not less than thirty days before the date of the hearing,revoke the effectiveness of a franchise registration (or refuse to renew aregistration if an application for renewal has been or is to be filed) if itfinds that such an order is in the public interest or that the franchisor orany controlling person of the franchisor:
1. Has engaged in any fraudulent transaction;
2. Is insolvent, or in danger of becoming insolvent, either (i) in the sensethat his liabilities exceed his assets or (ii) in the sense that he cannotmeet his obligations as they mature;
3. Is a person for whom a conservator or guardian has been appointed and isacting;
4. Has been convicted, within or without this Commonwealth, of anymisdemeanor involving a franchise, or any felony;
5. Has failed to furnish information requested by the Commission concerningthe conduct of his business; or
6. Has violated any of the provisions of this chapter.
B. If it appears to the Commission that it is in the public interest and thatthere exists one or more of the grounds enumerated in subdivisions (1)through (6) of subsection A of this section, the Commission may so notify thefranchisor. The franchisor shall have seven business days from the date ofthe written notice from the Commission within which to file a writtenresponse to the matters addressed in the notice. If (i) the Commissionnotified, or reasonably attempted to notify, the franchisor in writing, (ii)it appears to be in the public interest, and (iii) either the Commission,after consideration of the franchisor's response, reasonably believes theground or grounds exist or a response is not filed in a timely manner, theCommission may summarily enter an order suspending the effectiveness of thefranchisor's registration pending final determination of any proceeding underthis section. The Commission shall promptly send a copy of the suspensionorder to the franchisor and each of its subfranchisors, if any are known tothe Commission. At a minimum, the order shall set forth the basis for thesuspension as well as the franchisor's or subfranchisor's right to file awritten request for a hearing within twenty-one days after the date of entryof the order. If a hearing is requested in a timely manner, the Commission,after notice and an opportunity for a hearing as soon as practicable, maymodify or vacate the suspension order or continue it in effect until finaldetermination of the proceeding under this section. If a hearing is notrequested in a timely manner, the suspension order shall remain in effectuntil it is modified or vacated by the Commission.
(1972, c. 561; 1978, c. 670; 1991, c. 475; 1997, c. 921; 2007, c. 668.)
