Does the Azal Coffee franchise agreement addendum for Hawaii use the terms 'we', 'us', and 'our' to refer to the franchisee?
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.
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 includes a statement regarding the purchase of products. Specifically, it states that the requirement for the franchisee to purchase products from Azal Coffee or a designated entity "may be unlawful under Hawaii Law." If this requirement is found to be unlawful, it will be void, and the franchisee must purchase products from approved suppliers. This addendum uses the terms "we," "us," and "our" to refer to Azal Coffee, not the franchisee.
This stipulation protects the franchisee from being forced to comply with potentially unlawful purchasing requirements under Hawaii law. It ensures that if a purchasing requirement is deemed unlawful, the franchisee is not bound by it and can instead purchase products from approved suppliers. This could provide the franchisee with more flexibility and potentially better pricing or terms from alternative suppliers.
Prospective Azal Coffee franchisees in Hawaii should be aware of this addendum and understand their rights regarding product purchases. They should consult with legal counsel to fully understand the implications of Hawaii law on purchasing requirements and to ensure they are in compliance. This addendum highlights the importance of state-specific legal considerations in franchising and the need for franchisees to be informed about their rights and obligations under local laws.