What is the amount of the initial franchise fee for a Hawaiian Bros Island Grill franchise?
Hawaiian_Bros_Island_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
Outlet without Company's express prior permission; or
- (5) To operate a Special Outlet without Company's prior written permission.
- (b) Company reserves all rights that this Agreement does not expressly grant to or confer upon Franchisee.
3. FRANCHISE FEE
As partial consideration for the rights granted under this Agreement, Franchisee shall pay Company an initial franchise fee of $50,000 (the "Initial Franchise Fee"). The Initial Franchise Fee, less the amount of the Franchise Fee Deposit for the Franchised Resta
Source: Item 23 — RECEIPTS (FDD pages 77–262)
What This Means (2025 FDD)
According to Hawaiian Bros Island Grill's 2025 Franchise Disclosure Document, the initial franchise fee is $50,000. This fee is part of the consideration for the rights granted to the franchisee under the franchise agreement.
The initial franchise fee is typically paid when the franchise agreement is executed. The franchisee may be able to offset this fee by the amount of any Franchise Fee Deposit paid under the Development Agreement. Payment must be made via certified check, wire transfer, or electronic funds transfer.
It is important to note that the initial franchise fee is non-refundable under any circumstances. This means that even if the franchisee decides not to proceed with opening the Hawaiian Bros Island Grill restaurant, the $50,000 fee will not be returned.
Hawaiian Bros Island Grill recognizes the initial franchise fee as a contract liability when received and recognizes it as revenue on a straight-line basis over the term of each respective franchise agreement, which typically lasts 15 years, commencing when the related restaurant is opened.