For Azal Coffee franchises in Hawaii, what does the addendum modify?
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)
According to the 2024 Azal Coffee Franchise Disclosure Document, the addendum for Hawaii modifies Item 8 and Item 17. Specifically, regarding Item 8, the requirement that a franchisee purchase products from Azal Coffee or a designated supplier 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.
Concerning Item 17, any release signed by the franchisee as a condition of renewal or transfer will not exclude claims the franchisee may have under the Hawaii Investment Law. This means that even if a franchisee signs a release, they still retain the right to pursue claims under the Hawaii Investment Law.
These modifications are important for prospective Azal Coffee franchisees in Hawaii as they provide additional protections under Hawaii law. The modification to Item 8 ensures that franchisees are not forced to comply with unlawful purchasing requirements, while the modification to Item 17 protects their rights to pursue claims under the Hawaii Investment Law, even after signing a release.