Does the Azal Coffee franchise agreement addendum for Hawaii impose any financial thresholds on 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 the 2024 Azal Coffee Franchise Disclosure Document, the addendum for Hawaii addresses specific legal considerations but does not explicitly impose any financial thresholds on franchisees. Instead, it focuses on the legality of required purchases from the franchisor or designated entities under Hawaii law.
Specifically, the addendum states that if the requirement to purchase products from Azal Coffee or a designated supplier is found unlawful under Hawaii law, that requirement will be void. In such a case, the franchisee would then be required to purchase those products from approved suppliers. This clause primarily addresses compliance with Hawaii's legal framework regarding franchise agreements and purchasing requirements.
This adjustment ensures that the Azal Coffee franchise agreement adheres to local laws in Hawaii, providing a safeguard for franchisees against potentially unlawful requirements. However, it does not introduce any specific financial benchmarks or obligations that a franchisee must meet, focusing instead on sourcing products legally within the state.