• Menu
  • Skip to right header navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer

Natori Law Office LLLC

Big Firm Trained. Small Firm Care.

Header Right

1003 Bishop St • Pauahi Tower • Suite 1360 • Honolulu, HI 96813
  • Home
  • Our Attorneys
    • Nathan Natori
  • About Us
    • Your Initial Meeting
    • Clients
    • Testimonials
    • Fees
    • Outer Island
      • Big Island
      • Maui
      • Kauai
  • Practice Areas
    • Real Estate
      • Purchase & Sale of Hawaii Real Estate
      • Agreement of Sale
      • Commercial
      • Encroachment
      • Eviction
      • For Sale by Owner
      • Landlord / Tenant
      • Brokers & Realtors
      • Water Rights
      • Partition
    • Business
      • Forming A Business
      • Acquiring A Business
      • Corporate Governance
    • Financial Institutions
    • Construction
    • Debt Collection
    • Finance
    • Foreclosure
    • Franchise
    • Health Care
    • Land Use
    • Lobbying
    • Nonprofit
    • Public Utilities
    • Guardianship
    • Probate
  • News
  • Articles
  • Contact Us

Mobile Menu

  • Home
  • Our Attorneys
    • Nathan Natori
  • About Us
    • Your Initial Meeting
    • Clients
    • Testimonials
    • Fees
    • Outer Island
      • Big Island
      • Maui
      • Kauai
  • Practice Areas
    • Real Estate
      • Purchase & Sale of Hawaii Real Estate
      • Agreement of Sale
      • Commercial
      • Encroachment
      • Eviction
      • For Sale by Owner
      • Landlord / Tenant
      • Brokers & Realtors
      • Water Rights
      • Partition
    • Business
      • Forming A Business
      • Acquiring A Business
      • Corporate Governance
    • Financial Institutions
    • Construction
    • Debt Collection
    • Finance
    • Foreclosure
    • Franchise
    • Health Care
    • Land Use
    • Lobbying
    • Nonprofit
    • Public Utilities
    • Guardianship
    • Probate
  • News
  • Articles
  • Contact Us

Why a Prospective Hawaii Franchisee Should Seek Legal Consultation When Reading the Franchise Disclosure Document and Franchise Agreement

Any person who sells a franchise in the state of Hawaii must present to a prospective franchisee a franchise disclosure document (also known as a “franchise offering circular”) at least seven days prior to the sale of the franchise.  The intent of the Hawaii legislature in creating this requirement was to:

  • Provide each prospective Hawaii franchisee with information necessary for the prospective franchisee to make an intelligent decision of the franchise being offered; and
  • Prohibit the sale of franchises that would lead to fraud or a likelihood that the franchisor’s promises would not be fulfilled.

The franchise disclosure document usually contains twenty (25) specific items of information about the franchisor’s business together with a copy of the franchise agreement.  These items include the franchisor’s history, business experience, financial statements and the names and addresses of all franchisees of the franchisor.  Yet, despite the disclosure document’s importance, many prospective franchisees fail to read the franchise disclosure document because this document can be 100+ pages long, intimidating and sometimes confusing.  Therefore, it is important for a prospective franchisee to seek legal consultation because a Hawaii franchise attorney can provide a prospective franchisee with the following:

  • Help the prospective franchisee understand his/her/its rights and risks under the franchise disclosure document and franchise agreement;
  • Point out specific items of the franchise disclosure document and franchise agreement that may not be applicable in the Hawaii.
  • Advise the prospective franchisee on how to structure its business to reduce the franchisee’s personal exposure, such as setting up a limited liability company for the lease as well as discussing exit strategies.

As you can see, the franchise disclosure document is important to fully understand because it should be an open book to the franchisor’s business. Therefore, reviewing and understanding the franchise disclosure document and franchise agreement is critical.

Contact us today and we’ll help you review your franchise disclosure document and franchise agreement so that you understand your rights and risks as a Hawaii franchisee.

More Articles on Hawaii Franchise

  • Hawaii’s Requirements for a Mainland Franchisor Who Sells a Franchise in Hawaii
  • Why a Prospective Hawaii Franchisee Should Do Its Own Due Diligence and Not Rely Upon the Franchise Disclosure Document
  • Why a Prospective Hawaii Franchisee Should Seek Legal Consultation When Reading the Franchise Disclosure Document and Franchise Agreement

Primary Sidebar

Contact Us Now

  • Tell Us About Your Legal Issue

    To set up an appointment, please complete the inquiry form with your legal issue and contact information. We’ll respond to you within a day about whether or not we’re the right Hawaii attorneys for you. Besides whether we can handle your matter, we also need to determine if we’re a good fit for each other. We need to feel comfortable with you as a client, but you also need to feel comfortable with us as your Hawaii lawyer.

    Please note that we do not represent tenants in landlord/tenant disputes or borrowers in foreclosure proceedings.

  • * ~ Required · Privacy Policy

    Submitting this form does not establish an attorney-client relationship

  • This field is for validation purposes and should be left unchanged.

Footer

Aditya S.

Nathan is thorough, detailed, and knowledgeable.

Natori Law Office LLLC
1003 Bishop St
Pauahi Tower, Ste 1360
Honolulu, HI 96813

Site Footer

  • Home
  • Our Attorneys
  • About Us
  • Practice Areas
  • News
  • Articles
  • Contact Us

Copyright © 2023 Natori Law Office LLLC · All Rights Reserved

The information and content on this website is not formal legal advice. It is for informational purposes only. There is no legal association with the Natori Law Office LLLC based upon your viewing this website. You do not have any attorney-client relationship with the Natori Law Office LLLC unless you have formally retained the Natori Law Office LLLC to represent you by signing its engagement letter and complying with its terms.