HI HB2041

Voids any provision in a franchise agreement that restricts jurisdiction or venue to a forum outside of Hawaii for claims arising under or relating to a franchise in Hawaii.

Addresses Hawaii's physical isolation by preventing franchisees from being forced to adjudicate disputes thousands of miles away, which would be cost-prohibitive and prevent access to legal protections.

Ensures franchise disputes involving Hawaii conduct, witnesses, and physical evidence are resolved in Hawaii courts where judicial precedent can develop to inform interpretation of Hawaii franchise law.

Adds new subsection (d) to Section 482E-5, Hawaii Revised Statutes, establishing that out-of-state forum selection clauses in franchise agreements are void.

Effective date: July 1, 2112.