Does the provision regarding waiver of claims and disclaiming reliance supersede other terms in documents executed in connection with the Cool Binz franchise in Hawaii?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
OF THE DISCLOSURE DOCUMENT, TOGETHER WITH A COPY OF ALL PROPOSED AGREEMENTS RELATING TO THE SALE OF THE FRANCHISE.
THE DISCLOSURE DOCUMENT CONTAINS A SUMMARY ONLY OF CERTAIN MATERIAL PROVISIONS OF THE FRANCHISE AGREEMENT, 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.
Registered agent in the state authorized to receive service of process: Director of Commerce and Consumer Affairs, Business Registration Division, 1010 Richards Street, Honolulu, HI, 96813
In recognition of the requirements of the Hawaii Franchise Investment Law, Hawaii Rev. Stat. Sections 482E-, et. seq., the Franchise Disclosure Document of Cool Binz International, LLC, in connection with the offer and sale of franchises for use in the State of Hawaii, shall be amended to include the following:
Source: Item 23 — RECEIPTS (FDD pages 63–238)
What This Means (2025 FDD)
According to the 2025 Cool Binz Franchise Disclosure Document, for franchisees in Hawaii, any statement, questionnaire, or acknowledgment signed by a franchisee regarding the franchise relationship cannot waive claims under state franchise law, including fraud, or disclaim reliance on statements made by Cool Binz or its representatives. This specific provision takes precedence over any conflicting terms in any document related to the franchise agreement. This means that even if a franchisee signs a document that appears to waive certain rights or claims, that waiver will not be effective to the extent it violates Hawaii franchise law.
This protection is in place to ensure that Cool Binz franchisees in Hawaii are not unknowingly or unintentionally giving up their legal rights. It specifically addresses concerns about franchisees being induced into the agreement based on fraudulent information or representations made by the franchisor. By ensuring that franchisees can still pursue claims of fraud or misrepresentation, even if they have signed documents that seem to limit those claims, the law aims to create a fairer balance of power between the franchisor and franchisee.
This type of provision is not uncommon in franchise agreements, particularly in states with franchise-specific laws designed to protect franchisees. Prospective Cool Binz franchisees in Hawaii should carefully review all documents related to the franchise agreement and consult with an attorney to fully understand their rights and obligations under Hawaii law. This ensures they are aware of the protections afforded to them and can make informed decisions about entering into the franchise agreement.