If the Caring Transitions Hawaii Addendum is inconsistent with the Franchise Agreement, which terms govern?
Caring_Transitions Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 22 — CONTRACTS (FDD page 49)
What This Means (2025 FDD)
According to the 2025 Caring Transitions Franchise Disclosure Document, the Hawaii Addendum takes precedence over the standard Franchise Agreement if there are inconsistencies between the two. This means that if a specific clause or condition in the Franchise Agreement conflicts with a provision in the Hawaii Addendum, the terms outlined in the addendum will be the ones that govern the relationship between Caring Transitions and the franchisee in Hawaii.
This stipulation is included in the addendum to ensure compliance with the Hawaii Franchise Investment Law, Hawaii Revised Statutes, Title 26, Chapter 482E et seq.. The addendum explicitly states that if any part of the Franchise Agreement is inconsistent with this law, the Hawaii Franchise Investment Law will take precedence. This protects the franchisee by ensuring that their rights under Hawaii law are upheld.
For a prospective Caring Transitions franchisee in Hawaii, this means that they should pay close attention to both the Franchise Agreement and the Hawaii Addendum, understanding that the addendum modifies the original agreement to comply with local laws. In case of any discrepancy, the terms of the Hawaii Addendum and the Hawaii Franchise Investment Law will be the final authority. This ensures that the franchisee's rights are protected under Hawaii law, especially concerning nonrenewal, termination, and transfer of the franchise agreement.