What rights does the Hawaii Franchise Investment Law provide to City Publications franchisees concerning non-renewal of the Franchise Agreement?
City_Publications Franchise · 2025 FDDAnswer from 2025 FDD Document
FOR THE STATE OF HAWAII
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- The Franchise Agreement and Disclosure Document have been amended as follows:
- The Hawaii Franchise Investment Law provides rights to the franchisee concerning non-renewal, termination and transfer of the Franchise Agreement. If the Franchise Agreement, and more specifically, Sections 5B and 19 contain a provision that is inconsistent with the Hawaii Franchise Investment Law, the Hawaii Franchise Investment Law will control.
- Sections 5B.10 and 20B.2 of the Franchise Agreement require franchisee to sign a general release as a condition of renewal and transfer of the franchise; such release shall exclude claims arising under the Hawaii Franchise Investment Law.
Source: Item 23 — RECEIPT (FDD pages 39–129)
What This Means (2025 FDD)
According to City Publications' 2025 Franchise Disclosure Document, the Hawaii Franchise Investment Law provides rights to franchisees regarding non-renewal, termination, and transfer of the Franchise Agreement. Specifically, if any provision in the Franchise Agreement, particularly Sections 5B and 19, is inconsistent with the Hawaii Franchise Investment Law, the state law will take precedence. This means that the Hawaii Franchise Investment Law can override the terms outlined in the City Publications Franchise Agreement to protect the franchisee's rights concerning non-renewal, termination, and transfer.
Furthermore, the FDD stipulates that any general release required of the franchisee as a condition of renewal or transfer must exclude claims arising under the Hawaii Franchise Investment Law. This ensures that franchisees cannot be forced to waive their rights under Hawaii law when renewing or transferring their franchise.
In practical terms, a City Publications franchisee in Hawaii should be aware of the protections offered by the Hawaii Franchise Investment Law, especially concerning the non-renewal of their franchise agreement. They should consult with legal counsel to understand their rights and how the state law interacts with the specific terms of the City Publications Franchise Agreement. This is particularly important when considering renewal or transfer of the franchise to ensure full compliance with Hawaii law and to protect their investment.