What rights does the Hawaii Franchise Investment Law provide to Cinnabon franchisees regarding nonrenewal, termination, and transfer of the Franchise Agreement?
Cinnabon Franchise · 2025 FDDAnswer from 2025 FDD Document
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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.
Source: Item 23 — Receipts (FDD pages 114–399)
What This Means (2025 FDD)
According to Cinnabon's 2025 Franchise Disclosure Document, the Hawaii Franchise Investment Law provides certain rights to franchisees concerning nonrenewal, termination, and transfer of the Franchise Agreement. Specifically, the Franchise Agreement is amended for franchises offered and sold in Hawaii or to Hawaii residents to acknowledge the requirements of the Hawaii Franchise Investment Law, Hawaii Rev. Stat. §§ 482E, et seq. If any provisions in the Franchise Agreement regarding termination are inconsistent with the Hawaii Franchise Investment Law, then the Hawaii law will take precedence.
This means that prospective Cinnabon franchisees in Hawaii should be aware that their rights regarding nonrenewal, termination, and transfer are protected by Hawaii state law. The Hawaii Franchise Investment Law supersedes any conflicting terms in the standard Cinnabon Franchise Agreement.
It is important for potential Cinnabon franchisees in Hawaii to carefully review both the Franchise Agreement and the Hawaii Franchise Investment Law to fully understand their rights and obligations. Consulting with a legal professional experienced in franchise law is highly recommended to ensure a complete understanding of the legal landscape and to navigate any potential conflicts between the Franchise Agreement and Hawaii state law.