In the Azal Coffee franchise agreement addendum for Hawaii, what does 'we' refer to?
Azal_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
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 term 'we' in the Hawaii addendum refers to Azal Coffee, the franchisor. Specifically, it relates to the franchisor's requirement that franchisees purchase products from them or a designated entity.
The addendum states that this purchasing requirement may be unlawful under Hawaii law. If it is found to be unlawful, the requirement will be void, and the franchisee must purchase products from approved suppliers instead. This addendum modifies Item 8 of the Franchise Disclosure Document for franchisees in Hawaii.
This is a significant disclosure for potential Azal Coffee franchisees in Hawaii. It indicates that a standard requirement in the franchise agreement may not be enforceable in that state. Therefore, franchisees need to be aware of Hawaii law regarding purchasing requirements and be prepared to source products from approved suppliers if the standard requirement is deemed unlawful.