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As of this FDD, is the Even Hotels franchise registration effective in Hawaii?

Even_Hotels Franchise · 2025 FDD

Answer from 2025 FDD Document

uch as Business and Professions Code Section 20040.5, Code of Civil Procedure Section 1281, and the Federal Arbitration Act) to any provisions of a License Agreement restricting venue to a forum outside the State of California.

    1. The License Agreement contains a provision requiring you to waive your right to punitive damages against Holiday any of its representatives, limiting your recovery to actual damages.

Under California Corporations Code Section 31512, this provision may not be enforceable in California for any claims you may have under the California Franchise Investment Law.

    1. To the extent mandated under California law, no statement, questionnaire, or acknowledgement signed or agreed to by a licensee 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 Holiday. This provision supersedes any other term of any document executed in connection with the license.
    1. This California addendum applies only if the California Franchise Investment Law and the California Franchise Relations Act would apply on their own, even if Holiday did not provide this addendum.

HAWAII ADDENDUM TO FRANCHISE DISCLOSURE DOCUMENT

THESE FRANCHISES WILL BE OR HAVE BEEN FILED UNDER THE FRANCHISE INVESTMENT LAW OF THE STATE OF HAWAII. FILING DOES NOT CONSTITUTE APPROVAL, RECOMMENDATION OR ENDORSEMENT BY THE DIRECTOR OF COMMERCE AND CONSUMER AFFAIRS OR A FINDING BY THE DIRECTOR OF COMMERCE AND CONSUMER AFFAIRS THAT THE INFORMATION PROVIDED HEREIN IS TRUE, COMPLETE AND NOT MISLEADING.

**THE FRANCHISE INVESTMENT LAW MAKES IT UNLAWFUL TO OFFER OR SELL ANY FRANCHISE IN THIS STATE WITHOUT FIRST PROVIDING TO THE PROSPECTIVE FRANCHISEE, OR SUBFRANCHISOR, AT LEAST SEVEN DAYS PRIOR TO THE EXECUTION BY THE PROSPECTIVE FRANCHISEE OF ANY BINDING FRANCHISE OR OTHER AGREEMENT, OR AT LEAST SEVEN DAYS PRIOR TO THE PAYMENT OF ANY CONSIDERATION BY THE FRANCHISEE, OR SUBFRANCHISOR, WHICHEVER OCCURS FIRST, A COPY OF THE FRANCHISE DISCLOSURE DOCUMENT, TOGET

Source: Item 23 — RECEIPTS (FDD pages 99–438)

What This Means (2025 FDD)

According to Even Hotels's 2025 Franchise Disclosure Document, the franchise registration is effective in Hawaii. Item 23 indicates that the proposed registration is on file with (or exempt from the registration requirements of) Hawaii, along with several other states.

Furthermore, the document includes a specific amendment to the Holiday Hospitality Franchising, LLC Even Hotels License Agreement that pertains to Section 482E-3 of the Hawaii Revised Statutes. This amendment outlines how certain provisions of the license agreement are modified or superseded when applied to Even Hotels franchises issued in Hawaii. These modifications address aspects such as liability, bankruptcy code considerations, and franchisee rights concerning termination or non-renewal, ensuring compliance with Hawaii's franchise laws.

Additionally, the FDD includes a notification required by Hawaii Administrative Rule Chapter 37 §16-37-4 (7), which informs prospective franchisees that the franchises have been filed under Hawaii's Franchise Investment Law. This notification clarifies that filing does not constitute approval or endorsement by the Director of Regulatory Agencies and emphasizes the importance of reviewing the offering circular and franchise agreements thoroughly before making any commitments.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.