Does the Azal Coffee franchise agreement addendum for Hawaii change any obligations of the franchisee?
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 Azal Coffee's 2024 Franchise Disclosure Document, there are specific addenda that modify the franchise agreement for franchisees in Hawaii.
The addendum for Hawaii addresses the requirement to purchase products from Azal Coffee or its designated suppliers. Hawaii law may deem this requirement unlawful. If it is found to be unlawful, the requirement becomes void, and the franchisee must purchase products from approved suppliers instead. This means that a Hawaii franchisee might have more flexibility in sourcing products compared to franchisees in other states, potentially leading to cost savings or access to different products.
Additionally, any release signed by the franchisee as a condition of renewal or transfer will not exclude claims they may have under the Hawaii Investment Law. This protects the franchisee's rights under Hawaii law, ensuring they cannot waive certain legal claims, even when signing a release as part of renewing or transferring their franchise. This provision offers an additional layer of protection for franchisees in Hawaii, safeguarding their investment and legal recourse.