Hawaii’s Requirements for a Mainland Franchisor Who Sells a Franchise in Hawaii

Any person who sells a franchise in the state of Hawaii must present to the prospective franchisee a franchise disclosure document (also known as a “franchise offering circular”) as well as file this franchise disclosure document with the State of Hawaii’s Department of Commerce and Consumer Affairs at least seven days prior to the sale of the franchise.

In some cases the franchisor may have already sold franchises in other states prior to selling a franchise in Hawaii and, therefore, prepared a franchise disclosure document pursuant to the requirements specified by a federal agency or a government agency of another state.

The franchisor may present this franchise disclosure document to the prospective franchisee provided that the DCCA confirms that such franchise disclosure document substantially meets the Hawaii disclosure requirements. Should the DCCA fail to approve this franchise disclosure document, the franchisor will not be able to file this document with the DCCA nor present this document to any prospective Hawaii franchisee until it is revised pursuant to the DCCA’s comments and corrections.

As you can see, a mainland franchisor must follow specific Hawaii requirements before it can sell a franchise in Hawaii. Therefore, contact us and we can help you file your franchise disclosure document with the DCCA.

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