Hawaii
Franchise Registration
Hawaii
Hawaii is a franchise registration state.
Hawaii Franchise Laws
Hawaii defines a franchise as an oral or written contract or agreement, grants to another person, a license to use a trade name, service mark, trademark, logotype or related characteristic in which there is a community interest in the business of offering, selling, or distributing goods or services at wholesale or retail, leasing, or otherwise, and in which the franchisee is required to pay, directly or indirectly, a franchise fee. (HRS § 482E-2)
Hawaii Franchise Registration Filing
Hawaii is a franchise registration state which requires the filing of the FDD with the state of Hawaii for Franchise Regulator review and, sometimes, the issuance of a comment letter containing edits that the Franchise Regulator would like to the FDD.
The initial filing fee is $250 and must be accompanied by the following documents:
- Uniform Franchise Registration Application with Certification
- Uniform Franchise Consent to Service of Process
- Corporate or Limited Liability Company Acknowledgment
- Franchise Seller Disclosure Form
- Franchisor's Costs and Source Funds
- Consent of Accountant
- A Clean Copy of the Franchise Disclosure Document
Hawaii Fee Deferrals
Hawaii may require a fee deferral, which requires a deferment on the payment of initial franchise fees until the franchisor has completed its pre-opening obligations and the franchisee is open for business.
Hawaii Franchise Amendment
Hawaii requires an amendment filing of any material change. (HRS § 482E-3(25)(b))
A material change is defined broadly and includes the following:
1) The termination, closing, or failure to renew during any three-month period of
(A) The greater of one percent or five of all franchises of a franchisor or sub-franchisor regardless of location or
(B) The lesser of fifteen percent or two of the franchises of a franchisor or sub-franchisor located in this State.
2) Any change in control, corporate name, or state of incorporation, or reorganization of the franchisor whether or not the franchisor or its parent, if the franchisor or sub-franchisor is a subsidiary, is required to file reports under Section 12 of the Securities Exchange Act of 1934.
3) The purchase by the franchisor in excess of five percent of its existing franchises during any three-month period on a continuous basis.
4) The commencement of any new product, service, or model line involving, directly or indirectly, additional investment by any franchisee or the discontinuation or modification of the marketing plan or system of any product or service of the franchisor where the total sales from such product or service exceeds twenty percent of the gross sales of the franchisor on an annual basis.
A post-effective amendment filing is $250.
Hawaii Franchise Renewal Filing
The renewal filing fee is $250 and must be accompanied by the following documents:
- Uniform Franchise Registration Application with Certification
- Uniform Franchise Consent to Service of Process
- Corporate or Limited Liability Company Acknowledgment
- Franchise Seller Disclosure Form
- Hawaii Annual Franchise Sales Report
- Franchisor's Costs and Source of Funds
- Consent of Accountant
- A Clean and Marked Copy of the Franchise Disclosure Document
Hawaii's Franchise Relationship and Termination Laws
Hawaii’s Franchise Investment Laws also governs the relationship between the franchisor or subfranchisor and franchisee. (HRS § 482E-6)
A franchisor may not terminate or refuse to renew a franchise except for good cause, which includes, the failure of the franchisee to comply with any lawful, material provision of the franchise agreement after having been given written notice thereof and an opportunity to cure the failure within a reasonable period of time.” (HRS § 482E-6(2)(H)).
More Information About Hawaii's Franchise Laws
Want to learn more about our franchise services and franchising in Hawaii? Contact Us or call (757)-263-4596 to schedule a consultation. You can also visit our interactive map to learn more about other state franchise laws.
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