Is it lawful to offer or sell a Casiola franchise in Hawaii without first providing the prospective franchisee with a copy of the disclosure document and all proposed agreements?
Casiola Franchise · 2024 FDDAnswer from 2024 FDD Document
THE FRANCHISE INVESTMENT LAW MAKES IT UNLAWFUL TO OFFER OR SELL ANY FRANCHISE IN THIS STATE WITHOUT FIRST PROVIDING TO THE PROSPECTIVE FRANCHISEE, OR SUBFRANCHISOR, AT LEAST SEVEN DAYS BEFORE THE EXECUTION BY THE PROSPECTIVE FRANCHISEE, OF ANY BINDING FRANCHISE OR OTHER AGREEMENT, OR AT LEAST SEVEN DAYS BEFORE THE PAYMENT OF ANY CONSIDERATION BY THE FRANCHISEE, OR SUBFRANCHISOR, WHICHEVER OCCURS FIRST, A COPY OF THE DISCLOSURE DOCUMENT, TOGETHER WITH A COPY OF ALL PROPOSED AGREEMENTS RELATING TO THE SALE OF THE FRANCHISE.
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- THIS DISCLOSURE DOCUMENT CONTAINS A SUMMARY ONLY OF CERTAIN MATERIAL PROVISIONS OF THE FRANCHISE AGREEMENT AND THE CONTRACT OR AGREEMENT SHOULD BE REFERRED TO FOR A STATEMENT OF ALL RIGHTS, CONDITIONS, RESTRICTIONS AND OBLIGATIONS OF BOTH THE FRANCHISOR AND THE FRANCHISEE.
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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) WAITING 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, it is unlawful to offer or sell a Casiola franchise in Hawaii without first providing the prospective franchisee with a copy of the disclosure document and all proposed agreements relating to the sale of the franchise.
Specifically, Hawaii's franchise investment law mandates that a prospective franchisee or subfranchisor must receive the disclosure document along with all proposed agreements relating to the franchise sale at least seven days before the earlier of two events: the execution of any binding franchise or other agreement, or the payment of any consideration by the franchisee or subfranchisor. This requirement ensures that potential franchisees have adequate time to review the documents and make informed decisions.
The disclosure document contains a summary of certain material provisions of the franchise agreement. Prospective franchisees are advised to refer to the actual contract or agreement for a complete understanding of all rights, conditions, restrictions, and obligations of both Casiola and the franchisee. Furthermore, no statement, questionnaire, or acknowledgement signed by a franchisee can waive claims under state franchise law or disclaim reliance on statements made by Casiola or its representatives.