In Hawaii, which department handles securities for C3 Wellness Spa?
C3_Wellness_Spa Franchise · 2024 FDDAnswer from 2024 FDD Document
Exhibit K "FDD Receipts," is supplemented with the addition of the following:
The Receipt for this Disclosure Document (Exhibit "K") is supplemented to add the following:
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- THIS FRANCHISE 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.
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- 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 BEFORE THE EXECUTION BY THE PROSPECTIVE FRANCHISEE, OF ANY BINDING FRANCHISE OR OTHER AGREEMENT, OR AT LEAST SEVEN DAYS BEFORE THE PAYMENT OF ANY CONSIDERATION BY THE FRANCHISEE, OR SUBFRANCHISOR, WHICHEVER OCCURS FIRST, A COPY OF THE DISCLOSURE DOCUMENT, TOGETHER WITH A COPY OF ALL PROPOSED AGREEMENTS RELATING TO THE SALE OF THE FRANCHISE.
Source: Item 23 — RECEIPTS (FDD pages 59–293)
What This Means (2024 FDD)
According to C3 Wellness Spa's 2024 Franchise Disclosure Document, the franchise will be filed under the Franchise Investment Law of the State of Hawaii. The document explicitly states that this filing does not imply approval, recommendation, or endorsement by the Director of Commerce and Consumer Affairs. Furthermore, it is not a guarantee that the Director of Commerce and Consumer Affairs has determined the information provided is accurate, complete, and not misleading. This disclaimer is crucial for prospective franchisees to understand the limitations of the filing process.
The FDD also clarifies that Hawaii's Franchise Investment Law prohibits offering or selling any franchise in the state without first providing the prospective franchisee a copy of the disclosure document and all proposed agreements at least seven days before the earlier of (a) the execution of any binding franchise agreement or (b) the payment of any consideration by the franchisee. This seven-day review period is designed to allow potential franchisees adequate time to carefully evaluate the opportunity and seek professional advice.
Additionally, the C3 Wellness Spa FDD includes an amendment specific to Hawaii, acknowledging the requirements of the Hawaii Franchise Investment Law. This amendment modifies the standard franchise agreement to ensure compliance with Hawaii state law. One key modification concerns the conditions for approval of transfer, ensuring that the franchisee retains all rights and causes of action arising from the provisions of the Hawaii Franchise Investment Law. This provision aims to protect the franchisee's interests in the event of a transfer of the franchise.