factual

Does the Azal Coffee franchise agreement addendum for Hawaii apply to properties other than the initial franchise?

Azal_Coffee Franchise · 2024 FDD

Answer from 2024 FDD Document

HAWAII

  1. 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.

  1. 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)

Based on the 2024 Azal Coffee Franchise Disclosure Document, the excerpt provided contains an addendum that applies to franchisees in Hawaii. Specifically, it addresses the requirement to purchase products from Azal Coffee or designated entities, stating that such requirements may be unlawful under Hawaii Law. If found unlawful, the franchisee must purchase products from approved suppliers. Additionally, any release signed by the franchisee as a condition of renewal or transfer will not exclude claims under the Hawaii Investment Law.

This addendum modifies Item 8 and Item 17 of the standard Franchise Disclosure Document for Azal Coffee franchisees operating in Hawaii. It appears to address specific legal considerations and protections afforded to franchisees under Hawaii state law. The FDD excerpt does not specify whether these stipulations apply only to the initial franchise agreement or extend to renewals or transfers involving different properties.

To determine if the Hawaii addendum applies to properties beyond the initial franchise, a prospective Azal Coffee franchisee should seek clarification from the franchisor. Specifically, they should inquire whether the provisions related to unlawful purchase requirements and the exclusion of claims under the Hawaii Investment Law apply to subsequent franchise agreements, renewals, or transfers involving different locations or properties. This information is crucial for understanding the full scope of legal protections and obligations under the franchise agreement in Hawaii.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.