What is the stated intent of Casiola regarding the non-waiver provisions of the Hawaii Franchise Investment Law in the context of franchise transfers?
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.
Source: Item 23 — RECEIPTS (FDD pages 47–209)
What This Means (2024 FDD)
According to Casiola's 2024 Franchise Disclosure Document, the franchise agreement is amended to ensure that the non-waiver provisions of the Hawaii Franchise Investment Law are satisfied, specifically concerning franchise transfers. This means that any rights and causes of action available to the franchisee under the Hawaii Franchise Investment Law remain in effect, even during a transfer of the franchise.
The amendment supplements Sub-Article 14.C.(6), which addresses the "Conditions for Approval of Transfer." The added language clarifies that the franchisee retains all rights and legal recourse provided by the Hawaii Franchise Investment Law, regardless of the transfer conditions outlined in the franchise agreement. This is to ensure compliance with the non-waiver provisions of the Hawaii Franchise Investment Law.
This provision is significant for prospective Casiola franchisees in Hawaii because it protects their rights under state law during franchise transfers. It prevents Casiola from enforcing any transfer conditions that might inadvertently waive or diminish those rights. The FDD also states that if any part of the agreement is inconsistent with the Hawaii Franchise Investment Law, the law will take precedence.