Does the Azal Coffee franchise agreement addendum for Hawaii prohibit any actions by the franchisee that are otherwise permitted in the standard agreement?
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 within the state. It does not explicitly prohibit actions otherwise permitted in the standard agreement. Instead, it clarifies that certain requirements, specifically those related to mandatory purchasing, may be unlawful under Hawaii law.
If the requirement to purchase products from Azal Coffee or a designated supplier is found to be unlawful in Hawaii, it will be voided to the extent of the illegality. In such a case, the franchisee would be required to purchase those products from approved suppliers. This modification ensures compliance with Hawaii law while still maintaining standards for product sourcing.
Furthermore, 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 provision protects the franchisee's rights under Hawaii's specific investment regulations, ensuring that they cannot be compelled to waive those rights through standard release agreements.