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Does the Azal Coffee franchise agreement addendum for Hawaii contain any specific obligations for the franchisee?

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)

According to the 2024 Azal Coffee Franchise Disclosure Document, there are specific obligations outlined in the Hawaii addendum. The document states that the requirement for franchisees to purchase products from Azal Coffee or a designated entity may be unlawful under Hawaii law. If this requirement is deemed unlawful, it becomes void, and the franchisee must purchase products from approved suppliers instead.

Additionally, any release signed by the Azal Coffee franchisee as a condition of renewal or transfer will not exclude claims they may have under the Hawaii Investment Law. This provision protects the franchisee's rights under Hawaii's investment regulations, ensuring that they cannot be waived through standard release agreements.

These stipulations in the Hawaii addendum serve to protect franchisees by ensuring compliance with local laws and regulations. It is important for prospective Azal Coffee franchisees in Hawaii to understand these specific obligations and how they differ from the standard franchise agreement. Consulting with a legal professional familiar with Hawaii franchise law is advisable to fully grasp the implications of these provisions.

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.