What specific law is recognized in the amendment to the Punch King Fitness Franchise Agreement for Hawaii?
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 amendment to the franchise agreement for Hawaii recognizes the Hawaii Franchise Investment Law, specifically Hawaii Revised Statutes, Title 26, Chapter 482E et seq. This law provides franchisees in Hawaii with certain rights concerning non-renewal, termination, and transfer of the Franchise Agreement.
This addendum ensures that if any provision in the standard Punch King Fitness Franchise Agreement is inconsistent with the Hawaii Franchise Investment Law, the state law will take precedence. This protects the franchisee's rights under Hawaii law, regardless of what the standard agreement might say.
For a prospective Punch King Fitness franchisee in Hawaii, this means that the Hawaii Franchise Investment Law offers additional legal protections. It is important for franchisees to understand both the standard franchise agreement and the specific protections afforded by Hawaii law, as the latter will control in cases of conflict.