What happens if any provisions in the Carvel Franchise Agreement regarding termination are inconsistent with the Hawaii Franchise Investment Law?

According to Carvel's 2025 Franchise Disclosure Document, for franchises offered and sold in Hawaii, the Hawaii Franchise Investment Law takes precedence over any conflicting termination provisions in the standard Carvel Franchise Agreement. This means that if the Franchise Agreement contains terms about termination that are not consistent with the Hawaii Franchise Investment Law, the state law will apply.

This addendum ensures that Carvel franchisees in Hawaii receive the full protection of their state's franchise laws, especially concerning the critical aspects of franchise termination. The Hawaii Franchise Investment Law provides certain rights to franchisees regarding nonrenewal, termination, and transfer of the agreement.

For a prospective Carvel franchisee in Hawaii, this addendum offers significant protection. It clarifies that the franchisee's rights under Hawaii law cannot be overridden by the standard terms of the Franchise Agreement. It is important for potential franchisees to understand both the standard agreement and the Hawaii addendum to fully grasp their rights and obligations, especially concerning termination.