Does the Azal Coffee franchise agreement addendum for Hawaii require any additional fees?
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)
Based on the 2024 Azal Coffee Franchise Disclosure Document, the addendum for Hawaii addresses specific legal considerations but does not explicitly mention any additional fees. Instead, it focuses on the enforceability of certain requirements under Hawaii law.
Specifically, the addendum states that the requirement to purchase products from Azal Coffee or a designated supplier may be unlawful under Hawaii law. If this is the case, the requirement will be void, and the franchisee must purchase products from approved suppliers. This suggests that the focus is on ensuring compliance with local laws regarding purchasing requirements rather than imposing new fees.
Prospective Azal Coffee franchisees in Hawaii should consult with legal counsel to fully understand their rights and obligations under Hawaii law, particularly regarding supplier requirements. They should also confirm with Azal Coffee whether there are any implicit cost differences between purchasing from the franchisor versus approved suppliers, even if no explicit new fees are listed in the addendum.