Does the Azal Coffee franchise agreement addendum for Hawaii depend on the franchisee obtaining any specific licenses or permits 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 applies specifically to franchisees in Hawaii. However, the document does not explicitly state that the franchise agreement's validity or effectiveness is contingent upon the franchisee obtaining specific licenses or permits in Hawaii.
The Hawaii addendum primarily addresses the legality of required product purchases. It states that if the requirement to purchase products from Azal Coffee or a designated entity is found unlawful under Hawaii law, that requirement will be void. In such a case, the franchisee would be required to purchase products from approved suppliers instead.
While the provided FDD excerpts do not detail specific licensing or permit requirements, prospective Azal Coffee franchisees in Hawaii should independently verify all necessary licenses and permits with the relevant state and local authorities. It would also be prudent to directly ask Azal Coffee's franchise representatives about any required licenses or permits during the due diligence process to ensure full compliance and avoid potential legal issues.