To whom does the Hawaii section of the Costa Vida Fresh Mexican Grill addendum apply?

According to the 2025 Costa Vida Fresh Mexican Grill FDD, the Hawaii section of the addendum applies specifically to franchisees who are residents of Hawaii or those who intend to locate their Costa Vida Fresh Mexican Grill franchise within the state of Hawaii. This indicates that certain provisions within the standard franchise agreement may be modified or superseded by Hawaii state law to protect the franchisee's rights. These modifications address specific aspects of the franchise agreement related to non-renewal, termination, and transfer, ensuring compliance with the Hawaii Franchise Investment Law.

Specifically, the FDD highlights that if any part of Sections 2(C), 13, and 14 of the Franchise Agreement conflicts with the Hawaii Franchise Investment Law, the state law will take precedence. Furthermore, any general release required as a condition of renewal or transfer, as mentioned in Sections 2(C)(ii) and 13(C)(vii) of the Franchise Agreement, must exclude claims arising under the Hawaii Franchise Investment Law. Additionally, Section 13A(i), which allows termination of the Franchise Agreement upon the franchisee's bankruptcy, may not be enforceable under federal bankruptcy law.

This information is crucial for prospective Costa Vida Fresh Mexican Grill franchisees in Hawaii as it clarifies their rights and obligations under both the franchise agreement and Hawaii state law. It ensures that franchisees are aware of the legal protections available to them, particularly concerning termination, renewal, and transfer of the franchise. Franchisees should carefully review these sections with a legal professional to fully understand their implications and how they may affect their franchise operations in Hawaii.