Does the filing of Belocal franchises under the Franchise Investment Law of Hawaii constitute approval by the state?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
THESE FRANCHISES 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.
THE FRANCHISE INVESTMENT LAW MAKES IT UNLAWFUL TO OFFER OR SELL ANY FRANCHISE IN THIS STATE WITHOUT FIRST PROVIDING TO THE PROSPECTIVE FRANCHISEE, AT LEAST SEVEN DAYS PRIOR TO THE EXECUTION BY THE PROSPECTIVE FRANCHISEE OF ANY BINDING FRANCHISE OR OTHER AGREEMENT, OR AT LEAST SEVEN DAYS PRIOR TO THE PAYMENT OF ANY CONSIDERATION BY THE FRANCHISEE, WHICHEVER OCCURS FIRST, A COPY OF THE FRANCHISE DISCLOSURE DOCUMENT, TOGETHER WITH A COPY OF ALL PROPOSED AGREEMENTS RELATING TO THE SALE OF THE FRANCHISE.
Source: Item 22 — CONTRACTS (FDD page 71)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, the filing of the franchise under the Franchise Investment Law of Hawaii does not constitute approval, recommendation, or endorsement by the Director of Commerce and Consumer Affairs. It also does not represent a finding by the Director that the information provided in the FDD is true, complete, and not misleading. This is a standard disclaimer in franchise agreements for states with franchise investment laws.
This disclaimer means that Belocal's compliance with Hawaii's franchise law is simply a procedural requirement to legally offer franchises in the state. The state's review is not an endorsement of the franchise opportunity itself. A prospective franchisee should not interpret the filing as a guarantee of the franchise's viability or the accuracy of the information provided by Belocal.
Furthermore, the Franchise Investment Law mandates that Belocal provide a copy of the Franchise Disclosure Document and all proposed agreements to the prospective franchisee at least seven days before the earlier of the agreement's execution or any payment by the franchisee. This gives the franchisee time to review the documents and seek legal counsel before making a commitment. This requirement aims to protect potential franchisees by ensuring they have access to all relevant information before investing.
In essence, while Belocal must comply with Hawaii's franchise laws, this compliance does not equate to state approval or endorsement. Potential franchisees must conduct their own due diligence and seek professional advice to assess the risks and benefits of investing in a Belocal franchise.