Does the Hawaii Addendum to the Punch King Fitness Franchise Agreement amend the entire agreement?
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 the 2024 Punch King Fitness Franchise Disclosure Document, the Hawaii Addendum specifically amends the Franchise Agreement to comply with the Hawaii Franchise Investment Law. The addendum does not replace the entire agreement, but rather supplements it with modifications necessary to align with Hawaii state law.
The Hawaii Addendum addresses key areas such as the deferral of initial fees until Punch King Fitness has fulfilled its pre-opening obligations and the franchisee is open for business. It also clarifies the franchisee's rights concerning non-renewal, termination, and transfer, ensuring that the Hawaii Franchise Investment Law takes precedence over any conflicting provisions in the standard Franchise Agreement.
Furthermore, the addendum states that its provisions are effective only to the extent that they meet the jurisdictional requirements of the Hawaii Franchise Investment Law. In cases of inconsistency between the addendum and the Franchise Agreement, the terms of the addendum will govern. However, the Franchise Agreement is otherwise ratified and affirmed, indicating that the rest of the agreement remains in effect. This ensures that Punch King Fitness franchisees in Hawaii receive the protections mandated by state law while still adhering to the core terms of the franchise agreement.