factual

What Hawaii law is recognized in the Caring Transitions Hawaii Addendum to Franchise Agreement?

Caring_Transitions Franchise · 2025 FDD

Answer from 2025 FDD Document

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.

Source: Item 22 — CONTRACTS (FDD page 49)

What This Means (2025 FDD)

According to Caring Transitions' 2025 Franchise Disclosure Document, the Hawaii Addendum to the Franchise Agreement specifically recognizes the Hawaii Franchise Investment Law. This law is formally cited as Hawaii Revised Statutes, Title 26, Chapter 482E et seq. This recognition means that the Franchise Agreement is amended to ensure compliance with the Hawaii Franchise Investment Law.

Specifically, the addendum clarifies that if any provision in the standard Franchise Agreement conflicts with the Hawaii Franchise Investment Law, the state law will take precedence. This is particularly relevant to provisions 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, providing additional protection to the franchisee.

This addendum is effective only to the extent that the jurisdictional requirements of the Hawaii Franchise Investment Law are independently met. The terms of the addendum will govern if there are any inconsistencies between the addendum and the Franchise Agreement or any of its exhibits. This ensures that franchisees operating in Hawaii receive the protections and rights afforded to them under Hawaii state law, regardless of the standard terms in the franchise agreement. Prospective franchisees should carefully review the Hawaii Franchise Investment Law and consult with legal counsel to fully understand their rights and obligations.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.