Does the Azal Coffee franchise agreement addendum for Hawaii alter the definition of 'Franchise Agreement'?
Azal_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
HAWAII
- The following is in addition to the disclosure in Item 8 of the Franchise Disclosure Document:
The requirement for you to purchase products from us or some other entity as we designate in writing, may be unlawful under Hawaii Law. If, and to the extent, that requirement is found to be unlawful, that requirement will be void (to the extent unlawful) and you must purchase those products from approved suppliers.
- The following is in addition to the disclosure in Item 17 of the Franchise Disclosure Document:
Any release signed by you as a condition of renewal or transfer will not exclude claims you may have under the Hawaii Investment Law
Source: Item 23 — RECEIPTS (FDD pages 51–204)
What This Means (2024 FDD)
According to the 2024 Azal Coffee Franchise Disclosure Document, the addendum for Hawaii does not explicitly alter the definition of 'Franchise Agreement.' However, it includes provisions that add to the disclosure in Item 8 and Item 17 of the Franchise Disclosure Document.
Specifically, the addendum states that the requirement for franchisees to purchase products from Azal Coffee or a designated entity may be unlawful under Hawaii Law. If such a requirement is found unlawful, it becomes void, and the franchisee must purchase products from approved suppliers. This implies a modification of the standard purchasing requirements outlined in the main Franchise Agreement.
Additionally, any release signed by the franchisee as a condition of renewal or transfer will not exclude claims under the Hawaii Investment Law. This provision affects the enforceability of releases, which are typically part of the Franchise Agreement, within the state of Hawaii. Therefore, while the term 'Franchise Agreement' is not redefined, certain clauses within it are subject to modification or rendered void under specific conditions in Hawaii.