For a Belocal franchise in Hawaii, what is the range of Hawaii Revised Statutes that may apply to the franchise investment?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
To the extent the Hawaii Franchise Investment Law, Hawaii Rev. Stat. §§482E-1– 482E-12 applies, the terms following terms apply:
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.
THIS FRANCHISE DISCLOSURE DOCUMENT CONTAINS A SUMMARY ONLY OF CERTAIN MATERIAL PROVISIONS OF THE FRANCHISE AGREEMENT. THE CONTRACT OR AGREEMENT SHOULD BE REFERRED TO FOR A STATEMENT OF ALL RIGHTS, CONDITIONS, RESTRICTIONS AND OBLIGATIONS OF BOTH THE FRANCHISOR AND FRANCHISEE.
Source: Item 22 — CONTRACTS (FDD page 71)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, the Hawaii Franchise Investment Law, Hawaii Revised Statutes §§482E-1–482E-12, may apply to the franchise investment. This law requires that the franchise has been filed under the Franchise Investment Law of the State of Hawaii. However, the filing does not mean that the Director of Commerce and Consumer Affairs approves, recommends, or endorses the franchise, nor does it mean that the Director finds the information provided is true, complete, and not misleading.
Specifically, the law makes it illegal to offer or sell a Belocal franchise in Hawaii without first providing the prospective franchisee a copy of the Franchise Disclosure Document and all proposed agreements relating to the sale of the franchise. This must be done at least seven days before the franchisee executes any binding agreement or pays any consideration, whichever comes first.
It is important to note that the Franchise Disclosure Document contains only a summary of certain material provisions of the franchise agreement. Therefore, prospective Belocal franchisees in Hawaii should carefully review the actual contract or agreement for a complete understanding of all rights, conditions, restrictions, and obligations of both the franchisor and franchisee.