Does Hawaiian Bros Island Grill allow for renewal or extension of the franchise term?
Hawaiian_Bros_Island_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
| (1) Provision | (2) Section in Franchise Agreement | (3) Summary |
|---|---|---|
| a. Length of the | 11(a) | The term is 15 years. The term begins on the scheduled |
| franchise term. | opening date. | |
| b. Renewal or extension of the term. | 11(b), (d) | If you meet certain qualifications, our current franchise agreement allows you to renew your franchise for one additional 15-year term by signing the then-current franchise agreement. This means that you may be asked to sign an agreement with different terms and conditions that are materially different from those in your original agreement. |
| c. Requirements for franchisee to renew or extend. | 11(b)(i)-(viii) | You must: be in good standing; have satisfied all monetary and other material obligations owed to us; give timely notice of your intent to renew; sign our then- current franchise agreement; comply with our then-current training requirements; execute a release of claims against us and our affiliates; comply with all remodeling and redecoration requirements to bring your location into our then-current standards; and pay a renewal fee equal to 50% of the then-current Initial Franchise Fee. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 57–67)
What This Means (2025 FDD)
According to the 2025 Franchise Disclosure Document, Hawaiian Bros Island Grill allows franchisees to renew their franchise agreement under certain conditions. The initial franchise term is 15 years, beginning on the scheduled opening date. If a franchisee meets specific qualifications, they can renew for one additional 15-year term. However, this renewal requires signing the then-current franchise agreement, which may contain terms and conditions that differ significantly from the original agreement.
To qualify for renewal with Hawaiian Bros Island Grill, a franchisee must be in good standing and have fulfilled all monetary and other material obligations to the company. They must also provide timely notice of their intent to renew, sign the current franchise agreement, and meet the then-current training requirements. Additionally, franchisees must execute a release of claims against Hawaiian Bros Island Grill and its affiliates, comply with any remodeling or redecoration requirements to meet the company's current standards, and pay a renewal fee. This renewal fee is equal to 50% of the then-current Initial Franchise Fee.
Prospective franchisees should be aware that the terms of the renewed agreement may not be the same as the original, and could include materially different conditions. The renewal process also involves significant costs, including potential remodeling expenses and a renewal fee that is a substantial portion of the initial franchise fee. It is common practice in the franchise industry for renewal agreements to reflect the franchisor's current standards and fees, but franchisees should carefully review these terms to understand the full implications before committing to a renewal.