In Hawaii, what does the filing of the Southern Steer franchise under the Franchise Investment Law imply?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
THESE FRANCHISES WILL BE / HAVE BEEN FILED UNDER THE FRANCHISE INVESTMENT LAW OF THE STATE OF HAWAII. FILING DOES NOT CONSTITUTE APPROVAL, RECOMMENDATION OR ENDORSEMENT BY THE DIRECTOR OF COMMERCE AND CONSUMER AFFAIRS OR A FINDING BY THE DIRECTOR OF COMMERCE AND CONSUMER AFFAIRS THAT THE INFORMATION PROVIDED WITHIN THE FRANCHISE DISCLOSURE DOCUMENT IS TRUE, COMPLETE AND NOT MISLEADING.
THE FRANCHISE INVESTMENT LAW MAKES IT UNLAWFUL TO OFFER OR SELL ANY FRANCHISE IN THIS STATE WITHOUT FIRST PROVIDING TO YOU AT LEAST SEVEN DAYS PRIOR TO THE EXECUTION BY YOU OF ANY BINDING FRANCHISE OR OTHER AGREEMENT, OR AT LEAST SEVEN DAYS PRIOR TO THE PAYMENT OF ANY CONSIDERATION BY YOU, WHICHEVER OCCURS FIRST, A COPY OF THE FRANCHISE DISCLOSURE DOCUMENT, TOGETHER WITH A COPY OF ALL PROPOSED AGREEMENTS RELATING TO THE SALE OF THE FRANCHISE.
THIS FRANCHISE DISCLOSURE DOCUMENT CONTAINS A SUMMARY ONLY OF CERTAIN MATERIAL PROVISIONS OF THE FRANCHISE AGREEMENT. THE CONTRACT OR AGREEMENT SHOULD BE REFERRED TO FOR A STATEMENT OF ALL RIGHTS, CONDITIONS, RESTRICTIONS AND OBLIGATIONS OF BOTH US AND YOU.
Source: Item 5 — and 7 of the FDD, Section 3.1 of the Franchise Agreement and Section 4.1 of the Multi-Unit Development Agreement are hereby amended to state that payment of the initial franchise fee and development fee will be deferred until We have satisfied Our pre-opening obligations, and You have commenced business operations. (FDD pages 168–290)
What This Means (2025 FDD)
According to the 2025 Southern Steer Franchise Disclosure Document, the filing of the franchise in Hawaii under the Franchise Investment Law does not constitute approval, recommendation, or endorsement by the Director of Commerce and Consumer Affairs. It also does not represent a finding that the information provided in the FDD is true, complete, and not misleading.
For a prospective Southern Steer franchisee in Hawaii, this means the state's regulatory body has not verified or vouched for the accuracy or quality of the information presented in the FDD. The franchisee must conduct their own due diligence to assess the viability and risks associated with investing in a Southern Steer franchise.
The FDD also states that it is unlawful to offer or sell any franchise in Hawaii without providing the prospective franchisee a copy of the FDD and all proposed agreements at least seven days before signing any binding agreement or paying any consideration, whichever occurs first. The FDD itself only contains a summary of certain material provisions of the franchise agreement, and the franchisee should refer to the actual contract for a complete understanding of their rights, conditions, restrictions, and obligations.