What is the purpose of the Hawaii Franchise Agreement Amendment for Bang Cookies franchises?
Bang_Cookies Franchise · 2024 FDDAnswer from 2024 FDD Document
eed $100,000; (2) a presumption is created that any non-compete covenant with a duration longer than 18 months is unreasonable and unenforceable; (3) a franchisor may not restrict, restrain or prohibit a franchisee from soliciting or hiring any employee of the franchisor or a franchisee of the same franchisor; (4) any contractual provision that requires an employee to adjudicate a non-competition covenant outside of Washington State is void and unenforceable.
Wisconsin FDD Amendment
Amendments to the Bang Cookies Franchise Disclosure Document
Item 17, "Renewal, Termination, Transfer and Dispute Resolution," Item 17 is supplemented by the addition of the following:
The Wisconsin Fair Dealership Law Title XIV-A Ch. 135, Section 135.01-135.07 may affect the termination provision of the Franchise Agreement.
STATE SPECIFIC AMENDMENTS TO FRANCHISE AGREEMENT AND, IF APPLICABLE, MULTI-UNIT DEVELOPMENT AGREEMENT
HAWAII FRANCHISE AGREEMENT AMENDMENT
Amendments to the Bang Cookies Franchise Agreement
In recognition of the requirements of the Hawaii Franchise Investment Law, the undersigned agree to the following modifications to the Bang Cookies Franchise LLC Franchise Agreement (the "Franchise Agreement"), as follows:
- Sub-Article 14.C.(6). Sub-article 14.C.(6), under the Article section titled "Conditions for Approval of Transfer," is supplemented by the addition of the following language:
; provided, however, that all rights enjoyed by Franchisee and any causes of action arising in Franchisee's favor from the provisions of the Hawaii Franchise Investment Law, shall remain in force; it being the intent of this provision that the non-waiver provisions of the Hawaii Franchise Investment Law be satisfied; and
The Hawaii Franchise Investment Law provides rights to the franchisee concerning non-renewal, termination and transfer of the Franchise Agreement. If this Sub-article contains a provision that is inconsistent with the Hawaii Franchise Investment Law, the Hawaii Franchise Investment Law will control.
- Sub-Article 15.B.(8). Sub-article 15.B.(8), under the Article section titled "Conditions for Renewal," is supplemented by the addition of the following:
; provided, however, that all rights enjoyed by Franchisee and any causes of action arising in Franchisee's favor from the provisions of the Hawaii Franchise Investment Law, shall remain in force; it being the intent of this provision that the non-waiver provisions of the Hawaii Franchise Investment Law be satisfied;
Source: Item 23 — RECEIPTS (FDD pages 56–245)
What This Means (2024 FDD)
According to the 2024 Bang Cookies Franchise Disclosure Document, the Hawaii Franchise Agreement Amendment is designed to ensure compliance with the Hawaii Franchise Investment Law. This amendment modifies specific sections of the standard Bang Cookies Franchise Agreement to protect the rights of franchisees in Hawaii, particularly concerning the transfer and renewal of franchise agreements.
The amendment specifically addresses sub-articles related to 'Conditions for Approval of Transfer' and 'Conditions for Renewal.' It adds language to these sections to ensure that all rights and causes of action available to the franchisee under the Hawaii Franchise Investment Law remain in effect. The amendment clarifies that the non-waiver provisions of the Hawaii Franchise Investment Law are fully satisfied. This means that franchisees cannot unintentionally waive their rights under Hawaii law through the standard franchise agreement terms.
Furthermore, the amendment states that if any provision within it conflicts with the Hawaii Franchise Investment Law, the state law will take precedence. This ensures that Bang Cookies franchisees in Hawaii receive the full protection of the state's franchise laws, regardless of what the standard franchise agreement might say. The amendment is effective only to the extent that the jurisdictional requirements of the Hawaii Franchise Investment Law are independently met, without relying solely on the amendment itself.
In practical terms, this amendment provides an additional layer of legal security for Bang Cookies franchisees in Hawaii, ensuring their rights are protected under state law regarding franchise transfers, renewals, and terminations. Prospective franchisees should carefully review this amendment along with the full franchise agreement to understand their rights and obligations under Hawaii law.