What agreements must the transferee execute when transferring a Hawaiian Bros Island Grill franchise?
Hawaiian_Bros_Island_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
Without limiting Company's right to consent or withhold consent to a proposed transfer, whether to an individual or any Business Entity, Company's consent to any transfer will be conditioned on the following: (1) a proposed transferee that is a new Hawaiian Bros franchisee must meet Company's then-current criteria for new franchisees entering the System, (2) a proposed transferee that is an existing Hawaiian Bros franchisee must meet Company's then-current criteria for existing franchisees desiring to expand within the System beyond their commitments under their existing Development Agreement(s), (3) Franchisee must satisfy all of its outstanding obligations to Company or its Affiliates, (4) the Franchised Restaurant and Restaurant Premises must be in compliance with Company's then-current Standards, (5) the proposed transferee and the transferee's General Manager must satisfactorily complete Company's training program, (6) the transferee (or the Franchisee, if an Ownership Interest is transferred) must execute Company's thencurrent form of Franchise Agreement (which will limit the term of the transferee's franchise to the unexpired portion of the Term), Assignment of Telephone Number(s) and Online Presence, Authorization Agreement for Preauthorized Payments, and/or any other collateral agreements Company may then require, (7) concurrent with the execution of the then-current form of Franchise Agreement, each Controlling Principal of the transferee and their spouse (if any), must execute a Guaranty, (8) Franchisee, its Affiliates, and each Principal must give Company an unconditional, general release, in form and substance satisfactory to Company, of all claims they may have against Company and its Affiliates and their respective owners, directors, officers, and agents, and (9) Franchisee must have complied with any other conditions that Company reasonably requires from time to time as part of its transfer policies.
Source: Item 23 — RECEIPTS (FDD pages 77–262)
What This Means (2025 FDD)
According to the 2025 Hawaiian Bros Island Grill FDD, a transferee must execute several agreements as a condition of the transfer. The transferee must execute the then-current form of the Franchise Agreement, which will limit the term to the unexpired portion of the original term. Additionally, the transferee must execute an Assignment of Telephone Number(s) and Online Presence, and an Authorization Agreement for Preauthorized Payments. Hawaiian Bros Island Grill may also require the transferee to sign any other collateral agreements they deem necessary at that time.
If the transferee is a business entity, each controlling principal and their spouse (if any) must execute a Guaranty concurrent with the execution of the Franchise Agreement. The transferring franchisee, its affiliates, and each principal must provide Hawaiian Bros Island Grill with an unconditional, general release of all claims against the company and its affiliates.
These requirements ensure that the new franchisee is bound by the same obligations and standards as the original franchisee. They also protect Hawaiian Bros Island Grill's interests by securing releases from potential liabilities and ensuring continued compliance with system standards. Prospective franchisees should carefully review these requirements and understand the full scope of their obligations before agreeing to a transfer.