Does the Azal Coffee franchise agreement addendum for Hawaii change the requirements for obtaining permits to operate an Azal Coffee franchise in Hawaii?
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)
The 2024 Azal Coffee Franchise Disclosure Document includes an addendum that addresses specific legal considerations for franchisees in Hawaii. However, the document does not explicitly state any changes to the requirements for obtaining permits to operate an Azal Coffee franchise in Hawaii.
The Hawaii addendum focuses on the legality of required product purchases and the exclusion of claims under Hawaii Investment Law in certain releases. Specifically, it clarifies that the requirement to purchase products from Azal Coffee or a designated supplier may be unlawful under Hawaii Law. If this requirement is found to be unlawful, it will be void, and the franchisee must purchase products from approved suppliers.
Additionally, the addendum states that any release signed by a franchisee as a condition of renewal or transfer will not exclude claims they may have under the Hawaii Investment Law. This provision aims to protect franchisees' rights under Hawaii's specific investment regulations. Prospective franchisees should consult with legal counsel to fully understand the implications of these provisions and how they may affect their franchise operations in Hawaii.