To what extent is each provision of the Hawaii addendum effective for a Caring Transitions franchise?
Caring_Transitions Franchise · 2025 FDDAnswer from 2025 FDD Document
HAWAII ADDENDUM TO FRANCHISE AGREEMENT
This addendum, executed and agreed to concurrently with the Franchise Agreement to which it is attached, amends the Franchise Agreement as follows:
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- In recognition of the requirements of the Hawaii Franchise Investment Law, Hawaii Revised Statutes, Title 26, Chapter 482E et seq., the Franchise Agreement is amended as follows:
- (a) The Hawaii Franchise Investment Law provides rights to you concerning nonrenewal, termination and transfer of the Franchise Agreement. If the Franchise Agreement contains a provision that is inconsistent with the Hawaii Franchise Investment Law, the Hawaii Franchise Investment Law will control.
- (b) A general release required as a condition of the renewal, assignment, or transfer of the Franchise Agreement or the franchise granted thereunder shall not apply to any claim or liability arising under the Hawaii Franchise Investment Law.
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- Each provision of this addendum is effective only to the extent that the jurisdictional requirements of the Hawaii Franchise Investment Law are met independently of this addendum. To the extent this addendum is deemed to be inconsistent with any terms or conditions of the Franchise Agreement or any exhibit or attachment thereto, the terms of this addendum shall govern.
The parties are signing this addendum concurrently with the Franchise Agreement to which it is attached.
Source: Item 22 — CONTRACTS (FDD page 49)
What This Means (2025 FDD)
According to the 2025 Caring Transitions Franchise Disclosure Document, the Hawaii Addendum to the Franchise Agreement is designed to align the agreement with the Hawaii Franchise Investment Law. The addendum states that if any provision in the Franchise Agreement is inconsistent with the Hawaii Franchise Investment Law, the state law will take precedence. This ensures that franchisees in Hawaii are protected by their local laws, particularly concerning nonrenewal, termination, and transfer of the franchise.
Furthermore, any general release required for renewal, assignment, or transfer of the franchise will not apply to liabilities arising under the Hawaii Franchise Investment Law. This means a franchisee cannot waive their rights under Hawaii law, even when signing a standard release form. This protection is crucial for franchisees as it ensures they retain their legal rights under state law, regardless of any standard clauses in the franchise agreement.
Each provision within the Hawaii addendum is effective only to the extent that the jurisdictional requirements of the Hawaii Franchise Investment Law are independently met. If the addendum is inconsistent with any terms of the Franchise Agreement, the terms of the addendum will govern. This clause ensures that the addendum's provisions are applied correctly and that the franchisee's rights under Hawaii law are upheld, superseding any conflicting terms in the standard franchise agreement.