Does the agreement for Hawaiian Bros Island Grill apply to the development of Special Outlets?
Hawaiian_Bros_Island_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
- (b) The protected rights provided to Developer in Section 7(a) will not apply to, and Developer will have no competitive protection from, Special Outlets that Company or another franchisee or licensee (with Company's authorization) develops and/or operates, either permanently, temporarily or seasonally, in or outside of the Development Area. This Agreement does not apply to the development of Special Outlets and does not authorize or permit Developer to develop Special Outlets.
Source: Item 23 — RECEIPTS (FDD pages 77–262)
What This Means (2025 FDD)
According to the 2025 Hawaiian Bros Island Grill FDD, the agreement for development rights does not apply to Special Outlets. The FDD states that the competitive protection granted to the Developer does not extend to Special Outlets developed by Hawaiian Bros Island Grill or other franchisees or licensees.
Specifically, the agreement does not authorize or permit the Developer to develop Special Outlets. A "Special Outlet" is defined as a ghost kitchen, kiosk, food truck, temporary booth, or similar installation operating under the Hawaiian Bros Island Grill trade name. It also includes mobile dispensing units but excludes vehicles used for catering or delivery services.
This means that while a developer may have certain protected rights within a Development Area for traditional Hawaiian Bros Island Grill restaurants, these protections do not prevent the franchisor or other franchisees from establishing Special Outlets within that same area. A prospective franchisee should clarify with Hawaiian Bros Island Grill the specific conditions under which they might be allowed to operate a Special Outlet and what additional agreements or authorizations would be necessary.