factual

Is approval of the lease required before a Hawaiian Bros Island Grill franchisee signs it?

Hawaiian_Bros_Island_Grill Franchise · 2025 FDD

Answer from 2025 FDD Document

You must obtain our approval of the site for your Restaurant before you acquire the site. Unless you qualify and we approve you or your employee to select and source your own sites given your commercial real estate and development experience, you must use a licensed real estate broker to assist you with selecting and securing a site. If we have a preferred real estate broker in your market, you must use our preferred broker. If we do not have a preferred broker in your market, we have the right to approve your real estate broker. You must also use a licensed and experienced real estate attorney to negotiate your lease for the Restaurant location and obtain our approval of the lease before you sign it. We have the right to approve your site surveyors, permit expeditors, and architectural and engineering consultants.

Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 30–34)

What This Means (2025 FDD)

According to Hawaiian Bros Island Grill's 2025 Franchise Disclosure Document, franchisees must obtain approval of the lease for their restaurant location before signing it. To secure a site, franchisees must either qualify themselves or have an employee approved by Hawaiian Bros Island Grill based on their commercial real estate and development experience. Otherwise, they are required to use a licensed real estate broker. If Hawaiian Bros Island Grill has a preferred real estate broker in the market, the franchisee must use that broker. If not, Hawaiian Bros Island Grill retains the right to approve the franchisee's choice of real estate broker.

Furthermore, franchisees are obligated to use a licensed and experienced real estate attorney to negotiate the lease for the restaurant location. In addition to lease approval, Hawaiian Bros Island Grill also has the right to approve site surveyors, permit expeditors, and architectural and engineering consultants used by the franchisee.

This requirement ensures that the location and lease terms meet Hawaiian Bros Island Grill's standards, protecting the brand's interests and ensuring consistency across all franchise locations. It also helps franchisees avoid potentially unfavorable lease terms or unsuitable locations that could negatively impact their business.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.