When are the parties signing the Caring Transitions Hawaii Addendum in relation to the Franchise Agreement?
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 Caring Transitions' 2025 Franchise Disclosure Document, the Hawaii Addendum to the Franchise Agreement is executed and agreed to concurrently with the Franchise Agreement. This means that both documents are signed at the same time. This addendum specifically addresses requirements under the Hawaii Franchise Investment Law.
For a prospective Caring Transitions franchisee in Hawaii, this concurrent signing ensures that the specific protections and amendments required by Hawaii law are in place from the very beginning of the franchise relationship. This includes provisions related to nonrenewal, termination, and transfer of the Franchise Agreement, ensuring that the franchisee's rights under Hawaii law take precedence over any conflicting terms in the standard Franchise Agreement.
The addendum also clarifies that a general release required for renewal, assignment, or transfer does not apply to liabilities arising under the Hawaii Franchise Investment Law. This protects the franchisee's right to pursue claims under Hawaii law, even if they have signed a general release for other matters. This concurrent execution and the specific terms of the addendum are designed to comply with Hawaii franchise regulations and provide additional clarity and protection for franchisees operating in that state.
It is important for prospective franchisees in Hawaii to carefully review both the Franchise Agreement and the Hawaii Addendum to fully understand their rights and obligations. Understanding the interplay between these documents is crucial for a successful and legally compliant franchise operation within the state.