What is the purpose of 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 franchise agreement is to ensure compliance with the Hawaii Franchise Investment Law. The amendment modifies specific sections of the standard Cordova Franchise Agreement to protect the rights of franchisees in Hawaii, particularly concerning non-renewal, termination, and transfer of the franchise. This is achieved by adding language that ensures the rights and causes of action available to the franchisee under the Hawaii Franchise Investment Law remain in effect.
The amendment specifically addresses sub-articles related to the conditions for approval of transfer and conditions for renewal. It clarifies that if any provision within these sub-articles is inconsistent with the Hawaii Franchise Investment Law, the state law will take precedence. This ensures that Cordova franchisees in Hawaii receive the full protections afforded to them under state law, regardless of what the standard franchise agreement might state.
Furthermore, the amendment includes stipulations that no statement, questionnaire, or acknowledgement signed by the franchisee can waive any claims under Hawaii franchise law, including claims related to fraud. This provision reinforces the franchisee's rights and prevents unintentional or forced relinquishment of those rights during the franchise relationship. Cordova also supplements the FDD receipt to include disclosures required by Hawaii, such as the statement that filing does not constitute approval by the Director of Commerce and Consumer Affairs.