If the sections in the Face Foundrie Franchise Agreement relating to non-renewal, termination, and transfer are inconsistent with the Hawaii Franchise Investment Law, which law controls?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
The Sections in the Franchise Agreement that relate to non-renewal, termination, and transfer are only applicable if they are not inconsistent with the Hawaii Franchise Investment Law. Otherwise, the Hawaii Franchise Investment Law will control.
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION OF THE FRANCHISE RELATIONSHIP (FDD pages 51–59)
What This Means (2025 FDD)
According to Face Foundrie's 2025 Franchise Disclosure Document, if there are inconsistencies between the sections of the Franchise Agreement regarding non-renewal, termination, and transfer, and the Hawaii Franchise Investment Law, the Hawaii Franchise Investment Law will take precedence. This means that the stipulations within the Hawaii Franchise Investment Law will govern those specific aspects of the franchise relationship.
This protection is further reinforced by a general provision applicable in states with franchise registration/disclosure laws, including Hawaii. This provision ensures that no statement, questionnaire, or acknowledgement signed by the franchisee can waive claims under state franchise law, including fraud in the inducement, or disclaim reliance on statements made by Face Foundrie or its representatives. This clause overrides any conflicting terms in other documents related to the franchise agreement.
For a prospective Face Foundrie franchisee in Hawaii, this means that the state's franchise laws offer a baseline of protection that cannot be undermined by the standard terms of the franchise agreement. It is essential for franchisees to be aware of their rights under the Hawaii Franchise Investment Law and to consult with legal counsel to ensure full compliance and understanding of their obligations and protections.