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FDD Franchise Registration in Hawaii State

Hawaii Franchise Registration Status: Registration State
State Registration Fee: $250.00

Hawaii is a franchise registration state. This means that prior to offering or selling a franchise in Hawaii you must register your Franchise Disclosure Document (FDD) with the Hawaii Department of Commerce and Consumer Affairs. Once registered, your FDD and your Hawaii FDD registration must be updated and renewed no less frequently than annually.

In the State of Hawaii the Business Registration Division of the Department of Commerce and Consumer Affairs oversees the review and registration of FDDs and the implementation of Hawaii’s franchise regulations. In addition to the implementation of franchise registration requirements, Hawaii has also implemented franchise laws that govern the relationship between franchisors and franchisees. Before offering or selling a franchise in the State of Hawaii, as a franchisor, you must ensure that your current and updated FDD is registered with the Business Registration Division.

To learn more about registering your FDD in California and how we can help, give us a call at (800) 976-4904 or contact us.

Hawaii Franchise Registration FAQ’s

Who Regulates Franchises in Hawaii?

The Securities Compliance Branch of the Business Registration Division of the Hawaii Department of Commerce and Consumer Affairs regulates and oversees Hawaii’s franchise registration requirements. A Securities Examiner of the Business Registration Division will review your FDD registration and renewal application and will evaluate your FDD.

Where Are FDD Registration and Renewal Applications Filed?

Applications for initial FDD registration and annual renewal are filed at:

State of Hawaii
Business Registration Division
Department of Commerce and Consumer Affairs
Securities Compliance Branch
335 Merchant Street, Room 205
Honolulu, Hawaii 96813

Tel: (808) 586-2722

What Should I Include with My Initial Franchise Registration Application?

The initial franchise registration application should include:

  • Filing fee of $250 payable to the “Commissioner of Securities”;
  • Cover letter clearly stating the name of the applicant, the enclosed documents, the fiscal year of the applicant, and an acknowledgment that the franchise filing will “expire three months after the fiscal year end”;
  • Uniform Franchise Registration Application with Certification form;
  • Consent to Service of Process. This consent form must be specific to the State of Hawaii and cannot be based on the universal consent to service of process form;
  • Corporate Acknowledgment;
  • Franchise Seller Disclosure Form;
  • Franchisor’s Costs and Source of Funds Form; and
  • One complete hard copy of the Franchise Disclosure Document.

What Are the Fees for Franchise Registration Applications in Hawaii?

Franchise Registration - $250

Renewal Franchise Registration - $250

Amendments to Registered FDD - $250

What Are Hawaii’s Franchise Laws?

The “Hawaii Franchise Investment Law” governs and regulates the offer and sale of franchises in the State of Hawaii. The Hawaii Franchise Investment Law implements the FDD disclosure and registration requirements in the State of Hawaii and implements franchise relationship requirements as to the relationship between franchisors and franchisees in the State of Hawaii.

What Is the Definition of a Franchise in Hawaii?

Section 482E-2 of the Hawaii Franchise Investment Law applies a community of interest standard and defines a franchise, as:

“…an oral or written contract or agreement, either expressed or implied, in which a person grants to another person, a license to use a trade name, service mark, trademark, logotype, or related characteristic in which there is a community of 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”

Are There Exemptions to Hawaii’s Franchise Registration Requirements?

Yes, there are limited exemptions to Hawaii’s franchise registration requirements. Before relying on any registration exemption, you must carefully review the facts with your franchise lawyer. Section 482E-4 of the Hawaii Franchise Investment Law identifies, Hawaii’s registration exemptions, which include:

  • Motor vehicle franchises;
  • Out of state transactions where the offer and sale of the franchise relates to a prospective franchisee domiciled outside the State of Hawaii and where the franchised outlet will be located outside the State of Hawaii;
  • The extension or renewal of an existing franchise or the substitution of a modified or amended franchise agreement where there is no interruption in the operation of the franchise business of the franchisee and where there is no material change in the franchise relationship;
  • The transfer of the location of a franchisee where there is no interruption in the operation of the franchise business of the franchisee and where there is no material change in the franchise relationship; and
  • The offer or sale of an additional franchise to an existing franchisee of the same franchisor.

Are There Franchise Relationship Laws in Hawaii?

Yes. In addition to being a franchise registration state, Hawaii is also a “franchise relationship state”. This means that Hawaii has implemented laws that give franchisee’s additional rights that go beyond the terms of their franchise agreement. When dealing with franchisees in the State of Hawaii, Franchisors must be aware of Hawaii’s franchise relationship laws and the additional franchisee protections that it affords. Hawaii’s franchise relationship protections are extensive and include the imposition of good faith standards, and prohibitions as to activities of franchisors involving disparate treatment of franchisees, disclosure of rebates and kickbacks, prohibitions against actions that are unreasonable and arbitrary and others. Hawaii’s franchise relationship laws are contained in Section 4832E-6 of the Hawaii Franchise Relationship Law.

Useful Links Concerning Hawaii Franchise Laws

To learn more about State Franchise Laws, click here. To learn how we can assist you in registering your FDD, visit our Franchise Counsel Program page.

Charles Internicola

by Charles Internicola
National Business and Franchise Lawyer

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