factual

Is the Azal Coffee franchise agreement addendum for Hawaii a modification of the original agreement?

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 is a state-specific disclosure for Hawaii that relates to Item 8 and Item 17 of the franchise agreement. Specifically, for Item 8, the addendum states that the requirement for franchisees 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.

For Item 17, the addendum states that any release signed by the franchisee as a condition of renewal or transfer will not exclude claims they may have under the Hawaii Investment Law. This suggests that the standard franchise agreement is modified by these state-specific disclosures to comply with Hawaii law and to protect the franchisee's rights under the Hawaii Investment Law.

These modifications are important for prospective Azal Coffee franchisees in Hawaii because they address specific legal considerations within the state. The stipulations ensure that franchisees are not bound by unlawful purchasing requirements and that their rights under the Hawaii Investment Law are protected during renewal or transfer of the franchise. Franchisees should consult with a legal professional to fully understand the implications of these state-specific addenda and how they affect their franchise agreement.

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.