Does the Azal Coffee franchise agreement addendum for Hawaii impose any additional conditions on the franchisee's operation?
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 the 2024 Azal Coffee Franchise Disclosure Document, there are specific addenda for Hawaii that modify the standard franchise agreement.
The addendum for Hawaii addresses the requirement to purchase products from Azal Coffee or designated suppliers. It states that if this requirement is found unlawful under Hawaii law, it will be voided to the extent it is unlawful. In such cases, the franchisee must purchase products from approved suppliers. This modification acknowledges potential conflicts with Hawaii law regarding mandatory purchasing arrangements.
Additionally, any release signed by the franchisee as a condition of renewal or transfer will not exclude claims the franchisee may have under the Hawaii Investment Law. This provision protects the franchisee's rights under Hawaii's investment regulations, ensuring that they do not waive any legal claims related to their investment in the franchise when renewing or transferring the franchise agreement. These stipulations provide additional protections to Azal Coffee franchisees in Hawaii, addressing specific legal considerations within the state.