For Belocal franchises in Hawaii, can a franchisee disclaim reliance on any statement made by the franchisor, franchise seller, or other person acting on behalf of the franchisor through any statement, questionnaire, or acknowledgment?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
HAWAII ADDENDUM TO THE FRANCHISE DISCLOSURE 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.
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.
No statement, questionnaire, or acknowledgment signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed in connection with the franchise.
Source: Item 22 — CONTRACTS (FDD page 71)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, franchisees in Hawaii cannot disclaim reliance on statements made by Belocal, its franchise sellers, or anyone acting on Belocal's behalf. This protection applies regardless of any statement, questionnaire, or acknowledgment signed by the franchisee when starting the franchise relationship. This specific provision overrides any conflicting terms in any document related to the franchise agreement. This means that even if a franchisee signs a document that seems to waive their right to rely on previous statements, that waiver is not enforceable under Hawaii's franchise laws. This addendum ensures that franchisees retain their legal rights and protections under Hawaii state law.
This provision is included as part of the Hawaii Addendum to the Franchise Disclosure Document, emphasizing its importance for prospective franchisees in that state. The FDD also states that the franchise will be 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 of Commerce and Consumer Affairs finds that the information provided is true, complete, and not misleading.
This protection is significant because it prevents Belocal from using contractual language to shield itself from liability for misrepresentations or misleading statements made during the franchise sales process. It allows franchisees to pursue legal claims based on such statements, even if they signed documents that appear to waive that right. This non-disclaimer provision is a standard inclusion in franchise agreements in many states to protect franchisees from overreaching by franchisors. Prospective Belocal franchisees in Hawaii should carefully review the entire Franchise Disclosure Document and all related agreements to fully understand their rights and obligations.