What specific actions are considered unlawful regarding the offer or sale of a Ledgers franchise in Hawaii?

According to Ledgers's 2025 Franchise Disclosure Document, with respect to franchises governed by the Hawaii Franchise Investment Law, it is unlawful to offer or sell a Ledgers franchise in Hawaii without providing a prospective franchisee or subfranchisor a copy of the disclosure document and all proposed agreements relating to the sale of the franchise. This must be done at least seven days prior to the earlier of the execution of any binding franchise agreement or the payment of any consideration by the franchisee or subfranchisor.

This requirement ensures that potential Ledgers franchisees in Hawaii have adequate time to review the FDD and franchise agreements before committing to the franchise. The seven-day review period is a legal safeguard designed to prevent franchisees from being pressured into signing agreements without fully understanding their obligations and rights. This allows prospective franchisees to seek legal and financial advice, conduct due diligence, and make informed decisions.

It is important to note that the filing of the franchise with the Hawaii Director of Commerce and Consumer Affairs does not constitute approval, recommendation, or endorsement of the franchise. Nor does it indicate that the information provided in the FDD is true, complete, and not misleading. Prospective franchisees must still conduct their own independent evaluation of the Ledgers franchise opportunity.