How does the Hawaii Addendum to the Cinnabon Franchise Agreement modify Section 16.3.I regarding releases, specifically concerning claims under the Hawaii Franchise Investment Law?
Cinnabon Franchise · 2025 FDDAnswer from 2025 FDD Document
In recognition of the requirements of the Hawaii Franchise Investment Law, Hawaii Rev. Stat. §§ 482E, et seq., the Franchise Agreement, for franchises offered and sold in the State of Hawaii or to Hawaii residents, is amended to include the following:
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- Section 16.3.I. of the Franchise Agreement is amended by adding the following punctuation and language at the end of the section, before the period: "; provided, however, this release will not apply to claims as you may have under the Hawaii Franchise Investment Law."
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- Section 20 (Miscellaneous) of the Franchise Agreement is supplemented by the addition of the following Section, which is considered an integral part of the Agreement:
- 20.8 The general release language in this Agreement will not relieve us or any other person, directly or indirectly, from liability imposed by the Hawaii Franchise Investment Law.
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- The Hawaii Franchise Investment Law provides rights to you on nonrenewal, termination and transfer of the Agreement. If any of the provisions of the Franchise Agreement on termination are inconsistent with the Hawaii Franchise Investment Law, then this will apply.
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- Section 21.2 (Acknowledgements in Certain States) of the Franchise Agreement is hereby deleted.
Source: Item 23 — Receipts (FDD pages 114–399)
What This Means (2025 FDD)
According to the 2025 Cinnabon Franchise Disclosure Document, the Hawaii Addendum modifies Section 16.3.I of the Franchise Agreement to ensure that any general release signed by the franchisee does not waive claims they may have under the Hawaii Franchise Investment Law. This protection is specifically for franchises offered and sold in Hawaii or to Hawaii residents. The addendum adds language to the end of Section 16.3.I clarifying that the release does not apply to claims under the Hawaii Franchise Investment Law.
Furthermore, the Hawaii Addendum supplements Section 20 of the Franchise Agreement by adding Section 20.8, which explicitly states that the general release language in the agreement will not relieve Cinnabon or any other person from liability imposed by the Hawaii Franchise Investment Law. This reinforces the protection provided to franchisees under Hawaii law.
Additionally, the Hawaii Addendum addresses potential inconsistencies between the Franchise Agreement and the Hawaii Franchise Investment Law regarding nonrenewal, termination, and transfer. It clarifies that if any provisions in the Franchise Agreement conflict with the Hawaii Franchise Investment Law, the latter will take precedence. Section 21.2 of the Franchise Agreement, titled "Acknowledgements in Certain States," is deleted entirely under the Hawaii Addendum.