To what extent is each provision of the Hawaii addendum effective for Punch King Fitness franchisees?
Punch_King_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
The Franchise Agreement to which this addendum is attached is amended as follows to comply with the Hawaii Franchise Investment Law:
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- The Hawaii Department of Commerce and Consumer Affairs Business Registration Division requires that the franchisor defer the collection of all initial fees from Hawaii franchisees until the franchisor has completed all its pre-opening obligations and franchisee is open for business.
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- In recognition of the requirements of the Hawaii Franchise Investment Law, Hawaii Revised Statutes, Title 26, Chapter 482E et seq., the Franchise Agreement is amended as follows: The Hawaii Franchise Investment Law provides rights to you concerning non-renewal, termination, and transfer of the Franchise Agreement. If the Franchise Agreement contains a provision that is inconsistent with the Hawaii Franchise Investment Law, the Hawaii Franchise Investment Law will control it.
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- Each provision of this Addendum is effective only to the extent that the jurisdictional requirements of the Hawaii Franchise Investment Law are met independently of this addendum. To the extent, this addendum is inconsistent with any term or condition of the Franchise Agreement or its exhibits or attachments, the terms of this Addendum control. Franchisor and Franchisee hereby ratify and affirm the Franchise Agreement in all other respects.
Source: Item 22 — CONTRACTS (FDD pages 56–215)
What This Means (2024 FDD)
According to Punch King Fitness's 2024 Franchise Disclosure Document, the Hawaii addendum includes specific stipulations regarding the effectiveness of its provisions. The addendum states that each provision is effective only to the extent that the jurisdictional requirements of the Hawaii Franchise Investment Law are independently met. This means that the provisions of the addendum are not automatically effective simply by being included in the franchise agreement; they must also comply with Hawaii state law.
Furthermore, the addendum clarifies that if there is any inconsistency between the addendum and the franchise agreement (or its exhibits and attachments), the terms of the addendum will take precedence. This ensures that Hawaii franchisees are protected by the specific provisions designed to comply with Hawaii law. However, the franchise agreement is otherwise ratified and affirmed, meaning that all other aspects of the agreement remain in effect.
In practical terms, this means a Punch King Fitness franchisee in Hawaii needs to be aware of both the standard franchise agreement and the Hawaii addendum, understanding that the addendum modifies the original agreement to comply with local laws. It also implies that the franchisee should be familiar with the Hawaii Franchise Investment Law to fully understand their rights and obligations. This ensures that the franchisee is afforded all rights and protections under Hawaii law, while also adhering to the standard terms of the Punch King Fitness franchise agreement where those terms do not conflict with Hawaii law.