Does the Hawaii addendum for Deka Lash supersede other terms in documents related to the franchise?
Deka_Lash Franchise · 2024 FDDAnswer from 2024 FDD Document
HAWAII ADDENDUM TO THE FRANCHISE AGREEMENT
If any of the terms of the Franchise Agreement are inconsistent with the terms below, the terms below control
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- No statement, questionnaire, or acknowledgment signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed in connection with the franchise.
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- Initial Fee Deferral. The Franchise Agreement is modified to also provide that we defer the payment of all initial fees paid by you to us until we have performed all pre-opening obligations and you are open for business.
Source: Item 23 — RECEIPT (FDD pages 63–234)
What This Means (2024 FDD)
According to the 2024 Deka Lash Franchise Disclosure Document, the Hawaii addendum to the franchise agreement takes precedence over any conflicting terms in the standard franchise agreement. Specifically, the FDD states that if any terms within the Franchise Agreement are inconsistent with the terms outlined in the Hawaii addendum, the terms of the Hawaii addendum will govern. This ensures that Deka Lash franchisees in Hawaii are subject to specific protections and modifications as dictated by Hawaii state law.
One key provision in the Hawaii addendum is that no statement, questionnaire, or acknowledgment signed by a franchisee can waive claims under state franchise law, including claims of fraud in the inducement, or disclaim reliance on statements made by the franchisor. This provision explicitly supersedes any other term in any document related to the franchise, offering significant protection to franchisees in Hawaii.
Additionally, the Hawaii addendum modifies the standard Franchise Agreement to defer the payment of all initial fees until Deka Lash has fulfilled all pre-opening obligations and the franchisee is open for business. This deferral of initial fees can be a significant benefit for new franchisees in Hawaii, reducing their upfront financial burden and aligning the franchisor's interests with the franchisee's successful launch. This type of addendum is common to ensure compliance with state-specific franchise laws and to provide additional protections or modifications beneficial to franchisees within that state.