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Does the Azal Coffee franchise agreement addendum for Hawaii prohibit the franchisee from engaging in any activities that are otherwise permitted by law in Hawaii?

Azal_Coffee Franchise · 2024 FDD

Answer from 2024 FDD Document

  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.

Source: Item 23 — RECEIPTS (FDD pages 51–204)

What This Means (2024 FDD)

According to the 2024 Azal Coffee Franchise Disclosure Document, the Hawaii addendum addresses the purchase of products. Specifically, it 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 must purchase those products from approved suppliers.

This addendum does not explicitly state that the Azal Coffee franchise agreement prohibits franchisees from engaging in activities otherwise permitted by law in Hawaii. Instead, it focuses on ensuring compliance with Hawaii law regarding the purchase of products, providing a safeguard for the franchisee if certain requirements are deemed unlawful.

Prospective Azal Coffee franchisees in Hawaii should consult with a legal professional to fully understand their rights and obligations under Hawaii law and the franchise agreement. This will help ensure they are aware of any potential conflicts or restrictions and can operate their franchise in compliance with all applicable laws.

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.