How to Franchise Your Business in Hawaii:

Hawaii Franchise Regulations Guide

Hawaii offers a slew of culturally rich islands — foodie opportunities abound and site seeing is never in short supply. It is America’s most multicultural state, nestled at the crossroads of East and West. Franchising your business in Hawaii means access to a plethora of international tourists; in 2019, there was an average of 249,021 visitors on any given day, totaling 10,424,995 for that year. This number is a 5.4 percent increase from 2018. The Aloha State touts several ideal locations for business, including Kaua’i, Maui, Hawai’i and Oahu as some of the best business-friendly towns across all of the islands according to New York financial company, SmartAsset. The islands boast a general appreciation for locally owned and operated entities, with communities often rallying around local business owners and showing support. Hawaii is a Franchise Registration State.

It’s important to note that in addition to being a Franchise Registration State, Hawaii also recognizes Franchise Relationship Law, meaning more rights are given to franchisees beyond the parameters outlined by the FTC. Details of these additional protections are outlined in the Hawaii Franchise Relationship Law.

If you are thinking about offering your franchise for sale in Hawaii, here is some basic information to get you started…

The Basics:

Hawaii is a Franchise Registration State. A franchisor must comply with all steps in order to sell a franchise in the state. 

1. Before you offer to sell a franchise in Hawaii, you must first register your FDD with the Business Registration Division.
2. Ensure the FDD is compliant with Federal Franchise Rule (overseen by the Federal Trade Commission).
3. The fee for initial registration amended registration, and renewal is all the same: $250.

Keep in mind that regulations can change at any time, so keep up with the latest news at Business Registration Division

Let’s Break it Down…

The Franchise Investment Law outlines all regulations and exemptions for registering a franchise in Hawaii. Here’s what a franchisor needs to get ready to sell their franchise in Hawaii:

1. The $250 initial registration fee
2. The Uniform Franchise Registration Application
3. Consent to Service Process
4. All franchisors must be prepared to give candidates the information found here at least 7 days prior to the sale of the franchise. 
5. Hard copy of the FDD
6. Franchise Seller Disclosure Form
7. Cover letter

What’s Next?

With the above information in hand, applications can be sent to:

Mailing Address

Commissioner of Securities 

Department of Commerce and Consumer Affairs 

Business Registration Division 

335 Merchant Street

Room 203

Honolulu, HA 96813

If you are thinking about franchising your business, Franchise Marketing Systems can help! Visit https://www.fmsfranchise.com/about-us/contact to get started.