factual

What exhibit in the Bang Cookies Franchise Disclosure Document is supplemented by the Hawaii FDD Amendment?

Bang_Cookies Franchise · 2024 FDD

Answer from 2024 FDD Document

Exhibit K "FDD Receipts," is supplemented with the addition of the following:

The Receipt for this Disclosure Document (Exhibit "K") is supplemented to add the following:

    1. THIS FRANCHISE WILL BE/HAVE BEEN FILED UNDER THE FRANCHISE INVESTMENT LAW OF THE STATE OF HAWAII. FILING DOES NOT CONSTITUTE APPROVAL, RECOMMENDATION OR ENDORSEMENT BY THE DIRECTOR OF COMMERCE AND CONSUMER AFFAIRS OR A FINDING BY THE DIRECTOR OF COMMERCE AND CONSUMER AFFAIRS THAT THE INFORMATION PROVIDED HEREIN IS TRUE, COMPLETE AND NOT MISLEADING.
    1. THE FRANCHISE INVESTMENT LAW MAKES IT UNLAWFUL TO OFFER OR SELL ANY FRANCHISE IN THIS STATE WITHOUT FIRST PROVIDING TO THE PROSPECTIVE FRANCHISEE, OR SUBFRANCHISOR, AT LEAST SEVEN DAYS BEFORE THE EXECUTION BY THE PROSPECTIVE FRANCHISEE, OF ANY BINDING FRANCHISE OR OTHER AGREEMENT, OR AT LEAST SEVEN DAYS BEFORE THE PAYMENT OF ANY CONSIDERATION BY THE FRANCHISEE, OR SUBFRANCHISOR, WHICHEVER OCCURS FIRST, A COPY OF THE DISCLOSURE DOCUMENT, TOGETHER WITH A COPY OF ALL PROPOSED AGREEMENTS RELATING TO THE SALE OF THE FRANCHISE.
    1. THIS DISCLOSURE DOCUMENT CONTAINS A SUMMARY ONLY OF CERTAIN MATERIAL PROVISIONS OF THE FRANCHISE AGREEMENT AND THE CONTRACT OR AGREEMENT SHOULD BE REFERRED TO FOR A STATEMENT OF ALL RIGHTS, CONDITIONS, RESTRICTIONS AND OBLIGATIONS OF BOTH THE FRANCHISOR AND THE FRANCHISEE.

Source: Item 23 — RECEIPTS (FDD pages 56–245)

What This Means (2024 FDD)

According to Bang Cookies's 2024 Franchise Disclosure Document, Exhibit K, which pertains to FDD Receipts, is supplemented by the Hawaii FDD Amendment. This amendment includes specific statements required by Hawaii's franchise investment law. These statements clarify that the filing of the franchise in Hawaii does not constitute an endorsement by the state and outlines the franchisee's rights to review the disclosure document and agreements before committing to the franchise.

Specifically, the Hawaii FDD Amendment emphasizes that prospective Bang Cookies franchisees must receive the disclosure document at least seven days before signing any binding agreements or making any payments. It also points out that the disclosure document is a summary of the franchise agreement, and the actual agreement should be consulted for complete details regarding rights, conditions, restrictions, and obligations.

This amendment serves to ensure that Bang Cookies complies with Hawaii's franchise laws, which are designed to protect potential franchisees by providing them with adequate time and information to make informed decisions. Prospective franchisees in Hawaii should carefully review Exhibit K and the full franchise agreement, and consult with legal counsel, to fully understand their rights and obligations under Hawaii law.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.