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Franchise Lawyers Serving Hawaii

What You Need to Know About Franchising

Hawaii

Those that live in Hawaii enjoy a life of simple pleasures, with beaches and volcano hiking trails in abundance, it is easy to see why Hawaii has one of the highest qualities of life in the world. Don’t let the relaxed lifestyle fool you, though. The ‘Aloha State’ is home to over 125,000 small businesses and is a bustling economic island.

Before you grab your lei and head out as a Hawaiian entrepreneur, you need to remember that the state is a registration state. This means that before you buy or sell a franchise in Hawaii you must register your Franchise Disclosure Document (FDD) with the Business Registration Division of the Hawaii State Dept. of Commerce and Consumer Affairs.

In Hawaii, the initial FDD registration fee is $250 and the FDD renewal fee is $250.


Hawaii Franchise Filing Fees

$250

Initial

$250

Renewal*

$250

Post-Effective Amendment**

*Renewal filings must be submitted within 90 days after your fiscal year end or the filing must then be submitted as a new initial filing and will be reviewed as such by the state.

**Post-Effective Amendment filings must be submitted if you are making a material change to your FDD after your initial or renewal filing is approved. No further sales may be made in Hawaii until the amended FDD is approved and the registration is effectively amended.

Notes

All Hawaii filings are submitted online and the filing fees are paid to the state via ACH or credit card. For ACH payments, you will be required to complete and submit an ACH authorization form to us before we will submit the filing for you. For credit card payments, you will be required to complete and submit a credit card authorization form to us before we will submit the filing for you.

The Hawaii application required for each filing must be notarized.

If you are in your first year of franchising, Hawaii will accept unaudited financials instead of audited.

Financial Assurance – If the state deems you to not have adequate funding to fulfill all your pre-opening obligations to a franchisee, they will require some form of financial assurance be instituted, such as an escrow, impoundment or deferral of initial fees, or the posting of a surety bond.

Did You Know?

Maui’s Mount Haleakala is the largest dormant volcano in the world.

Maui Accommodations

Hawaii is the only U.S. state with two official languages.

Maui Accommodations

Hawaii is the world's largest island chain, and it's the only U.S. state completely made up of islands.

Kids National Geographic

Hawaii Franchise Exemptions

Sales to Existing Franchisees – exemption from registration and disclosure

Renewal of an Existing Agreement – exemption from registration and disclosure

Motor Vehicle Franchises – exemption from registration and disclosure

Sale to a bank, savings institution, trust company, insurance company, investment company

CORE

Flat Fee Program for Franchisors

Spadea Lignana’s CORE program for franchisors is a cost-effective and practical solution for the ongoing legal needs of franchisors, including but not limited to, FDD updates, state registrations and franchise agreement executions. Through a proprietary cloud-based system we can effectively and efficiently manage FDD Disclosures and Franchise Agreement executions for fair flat fees billed monthly. We believe that hourly billing, although necessary in certain circumstances like complex M&A deals and litigation, can weigh on the relationship between client and attorney.  By coming up with a fair flat monthly fee, the uncomfortable negotiating of whether or not a 6 minute increment in your bill for replying to an email was legitimate goes away.

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Attorneys Who Understand HI Franchise Law

Franchise laws vary from state to state, and it can be difficult to understand the requirements. Spadea Lignana has streamlined the process to ensure you remain compliant as you grow nationally.

We also work with franchisors all over the pacific and west coast including California, Oregon, Washington, and Alaska.

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