What law is the Hawaii Franchise Agreement Amendment for Casiola designed to recognize?
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:
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- Sub-Article 14.C.(6). Sub-article 14.C.(6), under the Article section titled "Conditions for Approval of Transfer," is supplemented by the addition of the following language:
- ; 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 Sub-article contains a provision that is inconsistent with the Hawaii Franchise Investment Law, the Hawaii Franchise Investment Law will control.
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- 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.
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- Each provision of this amendment shall be effective only to the extent, with respect to such provision, that the jurisdictional requirements of the Hawaii Franchise Investment Law are met independently without reference to this amendment.
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- No statement, questionnaire or acknowledgement signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of: (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed in connection with the franchise.
Source: Item 23 — RECEIPTS (FDD pages 47–209)
What This Means (2024 FDD)
According to Casiola's 2024 Franchise Disclosure Document, the Hawaii Franchise Agreement Amendment is designed to recognize the requirements of the Hawaii Franchise Investment Law. The amendment modifies specific sub-articles within the Franchise Agreement to ensure compliance with this law.
Specifically, the amendment addresses issues related to the franchisee's rights concerning non-renewal, termination, and transfer of the Franchise Agreement. It clarifies that if any provision within the sub-articles is inconsistent with the Hawaii Franchise Investment Law, the state law will take precedence. This ensures that franchisees retain all rights and causes of action arising from the Hawaii Franchise Investment Law, preventing any unintentional waiver of these rights.
Furthermore, the amendment stipulates that no statement, questionnaire, or acknowledgement signed by a franchisee can waive claims under applicable state franchise law, including fraud in the inducement, or disclaim reliance on statements made by Casiola or its representatives. This provision reinforces the protection afforded to franchisees under Hawaii law and supersedes any conflicting terms in other documents related to the franchise agreement. This is a common practice to ensure franchisees are aware of their rights and that the franchise agreement adheres to local regulations.