What is the intent of the provision added to Casiola's Sub-Article 15.B.(8) regarding conditions for renewal, specifically concerning the Hawaii Franchise Investment Law?
Casiola Franchise · 2024 FDDAnswer from 2024 FDD Document
Amendments to the Casiola Franchise Agreement:
In recognition of the requirements of the Hawaii Franchise Investment Law, the undersigned agree to the following modifications to Casiola Franchise LLC Franchise Agreement (the "Franchise Agreement"), as follows:
-
- Sub-Article 15.B.(8). Sub-article 15.B.(8), under the Article section titled "Conditions for Renewal," is supplemented by the addition of the following:
- ; provided, however, that all rights enjoyed by Franchisee and any causes of action arising in Franchisee's favor from the provisions of the Hawaii Franchise Investment Law, shall remain in force; it being the intent of this provision that the non-waiver provisions of the Hawaii Franchise Investment Law be satisfied; and
The Hawaii Franchise Investment Law provides rights to the franchisee concerning non-renewal, termination and transfer of the Franchise Agreement. If this subarticle contains a provision that is inconsistent with the Hawaii Franchise Investment Law, the Hawaii Franchise Investment Law will control.
Source: Item 23 — RECEIPTS (FDD pages 47–209)
What This Means (2024 FDD)
According to Casiola's 2024 Franchise Disclosure Document, Sub-Article 15.B.(8), which addresses the conditions for renewal of a franchise agreement, is supplemented to ensure compliance with the Hawaii Franchise Investment Law. The added provision explicitly states that all rights and causes of action available to the franchisee under the Hawaii Franchise Investment Law remain in effect. The intent is to satisfy the non-waiver provisions of the Hawaii Franchise Investment Law.
This means that Casiola franchisees in Hawaii cannot be forced to waive their rights under Hawaii's franchise law as a condition of renewing their franchise agreement. The Hawaii Franchise Investment Law provides franchisees with specific protections related to non-renewal, termination, and transfer of the franchise agreement.
Furthermore, the amendment clarifies that if any part of Sub-Article 15.B.(8) is inconsistent with the Hawaii Franchise Investment Law, the state law will take precedence. This ensures that Casiola franchisees in Hawaii receive the full protection of their state's franchise laws, regardless of what the franchise agreement might otherwise stipulate. This type of amendment is common in franchise agreements to ensure compliance with state-specific franchise laws, which often provide additional protections to franchisees beyond federal law.