Does the Azal Coffee franchise agreement addendum for Hawaii set any financial thresholds for the franchisee's performance?
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 an addendum that applies specifically to franchisees in Hawaii. However, this addendum does not specify any financial performance thresholds that Azal Coffee franchisees must meet.
Instead, the Hawaii-specific clause addresses the legality of required product purchases. According to the FDD, Hawaii law may deem it unlawful for Azal Coffee to mandate that franchisees purchase products exclusively from the franchisor or its designated suppliers. If this requirement is found to be unlawful, the franchisee would then be permitted to purchase products from approved suppliers.
The addendum also states that 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 provides additional protection to the franchisee under Hawaii state law.