Is Hawaiian Bros Island Grill or its affiliates entitled to rebates or other consideration from suppliers?

According to the 2025 Hawaiian Bros Island Grill FDD, Hawaiian Bros Island Grill and/or a Company Affiliate may be a supplier of approved or required inventory, supplies, equipment, merchandise or technology services and may be the only approved supplier with respect to certain of such items, some of which may be required. This means that Hawaiian Bros Island Grill could potentially receive financial benefits from these supplier relationships.

As a franchisee, you are obligated to purchase inventory, supplies, equipment, merchandise, and technology services only from suppliers that Hawaiian Bros Island Grill designates or approves. The number of approved suppliers may be limited by Hawaiian Bros Island Grill. This requirement ensures consistency and quality control across all Hawaiian Bros Island Grill locations, but it also limits the franchisee's ability to negotiate better prices or find alternative suppliers.

This arrangement is common in franchising, where franchisors often establish approved supplier networks to maintain brand standards and potentially generate revenue through rebates or other considerations from those suppliers. Prospective franchisees should inquire about the specific criteria for supplier approval, the process for suggesting new suppliers, and the potential impact of these arrangements on their operating costs and profitability.