Does the Azal Coffee franchise agreement addendum for Hawaii restrict the franchisee's operations to a specific geographic area within Hawaii?
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)
The 2024 Azal Coffee Franchise Disclosure Document includes a Hawaii-specific addendum in Item 23. However, the document does not explicitly state whether the addendum restricts a franchisee's operations to a specific geographic area within Hawaii. The Hawaii addendum addresses the purchase of products and release signed as a condition of renewal or transfer.
Specifically, the Hawaii addendum states that the requirement to purchase products from Azal Coffee or a designated entity may be unlawful under Hawaii law. If deemed unlawful, the franchisee can purchase products from approved suppliers. Additionally, any release signed by the franchisee as a condition of renewal or transfer will not exclude claims under the Hawaii Investment Law.
Because the FDD excerpt does not specify whether the Hawaii addendum restricts operations to a specific geographic area, prospective Azal Coffee franchisees should seek clarification from the franchisor regarding territorial rights and any geographic limitations imposed by the franchise agreement or its addendum for Hawaii.