What law is recognized in the Hawaii amendment to the Cordova Franchise Agreement?
Cordova Franchise · 2025 FDDAnswer from 2025 FDD Document
In recognition of the requirements of the Hawaii Franchise Investment Law, the undersigned agree to the following modifications to Cordova Franchising, LLC Franchise Agreement (the "Franchise Agreement"), as follows:
- 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.
- Sub-Article 15.B.(8). Sub-article 15.B.(8), under the Article section titled "Conditions for Renewal," is supplemented by the addition of the following:
; 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 subarticle 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 44–195)
What This Means (2025 FDD)
According to Cordova's 2025 Franchise Disclosure Document, the Hawaii amendment to the Cordova Franchise Agreement recognizes the Hawaii Franchise Investment Law. This law provides franchisees with specific rights related to the non-renewal, termination, and transfer of their Franchise Agreement. The amendment ensures that these rights remain in force for the franchisee.
Specifically, the Cordova Franchise Agreement is modified to ensure that any rights or causes of action arising in the franchisee's favor under the Hawaii Franchise Investment Law are upheld. The intention is to satisfy the non-waiver provisions of this law, meaning franchisees cannot unintentionally give up their rights under the law through other provisions of the agreement.
Furthermore, the amendment clarifies that if any part of the Cordova Franchise Agreement is inconsistent with the Hawaii Franchise Investment Law, the state law will take precedence. This provides an additional layer of protection for franchisees operating in Hawaii, ensuring that their rights under state law are fully respected and enforceable.