In Hawaii, which government department oversees securities compliance related to Best Western franchises?
Best_Western Franchise · 2025 FDDAnswer from 2025 FDD Document
HAWAII
The following is added to the Cover Page of the 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 REGULATORY AGENCIES OR A FINDING BY THE DIRECTOR OF REGULATORY AGENCIES 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, OR SUBFRANCHISOR, 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, OR SUBFRANCHISOR, WHICHEVER OCCURS FIRST, A COPY OF THE OFFERING CIRCULAR, TOGETHER WITH A COPY OF ALL PROPOSED AGREEMENTS RELATING TO THE SALE OF THE FRANCHISE.
Source: Item 23 — Receipts (FDD pages 108–413)
What This Means (2025 FDD)
According to Best Western's 2025 Franchise Disclosure Document, the franchises in Hawaii are filed under the Franchise Investment Law of the state. The document explicitly states that this filing does not imply approval, recommendation, or endorsement by the Director of Regulatory Agencies. Furthermore, it is not a guarantee that the information provided in the document is accurate, complete, and not misleading. This indicates that while the Director of Regulatory Agencies is involved in the filing process, they do not provide an affirmative assurance of the franchise's quality or viability.
This disclosure is a standard practice in franchise regulation, intended to prevent potential franchisees from assuming that government oversight equates to a guaranteed investment. The FDD emphasizes that prospective franchisees must conduct their own due diligence to assess the risks and opportunities associated with investing in a Best Western franchise. This includes carefully reviewing the FDD, seeking advice from legal and financial professionals, and thoroughly researching the market and competition in their desired location.
The FDD also highlights the importance of providing the prospective franchisee with the offering circular and all proposed agreements relating to the sale of the franchise at least seven days prior to the execution of any binding agreement or the payment of any consideration. This seven-day review period is mandated by the Franchise Investment Law and allows potential franchisees adequate time to consider the terms of the franchise agreement and make an informed decision. This requirement aims to protect franchisees from being pressured into signing agreements without sufficient time for review and consultation.