For a Belocal franchise in Hawaii, what specific Hawaii statute applies 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 Rev. Stat. §§482E-1– 482E-12, applies to the sale of franchises in Hawaii. The FDD states that these franchises have been filed under this law. However, the filing does not mean that the Director of Commerce and Consumer Affairs has approved, recommended, or endorsed the franchise, or that the Director has found the information provided to be true, complete, and not misleading.
The Hawaii Franchise Investment Law makes it unlawful to offer or sell any 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.
The FDD also states that it contains a summary of certain material provisions of the franchise agreement, and the actual contract or agreement should be consulted for a complete statement of all rights, conditions, restrictions, and obligations of both Belocal and the franchisee. Furthermore, any statement, questionnaire, or acknowledgment signed by a franchisee cannot waive claims under any applicable state franchise law, including fraud in the inducement, or disclaim reliance on any statement made by Belocal or anyone acting on its behalf. This provision supersedes any other term in any document executed in connection with the franchise.