What aspects of a Hawaiian Bros Island Grill restaurant's development are governed by the Development Agreement?
Hawaiian_Bros_Island_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
A Hawaiian Bros Island Grill franchise entitles you to operate one Restaurant at an approved location. Our Development Agreement gives you the right and obligation to develop one or more Restaurants and governs a Restaurant's development phase, location, and timeframe. The Development Agreement gives you the right to obtain a franchise for a Restaurant after you complete our site location procedures and sign a lease for a location that we have approved. After you sign a lease, you must sign a Franchise Agreement for the Restaurant as soon as the federally mandated, and any applicable state mandated, waiting period has passed. You must sign our Franchise Agreement in the form being offered at the applicable time for each Restaurant you open. Each Franchise Agreement gives you the right to own and operate a single Restaurant at a specific location.
Your Development Agreement also states the terms on which you are required to develop more than one Restaurant if we allow you to become a multi-Restaurant operator. We offer multi-Restaurant development rights only to qualified persons. Typically, a prospective franchisee sends us a personal profile and application setting forth personal, financial, business, and other information on the prospective franchisee and its owners. You are required to pay a portion of the franchise fee for each Restaurant you have the right and obligation to develop under a Development Agreement as a deposit at the time of signing the Development Agreement. No portion of the franchise fee deposit is refundable if you fail to develop Restaurants according to your Development Agreement's terms. You must sign our then-current form of Franchise Agreement for each additional Restaurant you develop. That form may differ from the form of Franchise Agreement included in this disclosure document.
Source: Item 1 — THE FRANCHISOR, AND ANY PARENT, PREDECESSORS AND AFFILIATES (FDD pages 8–10)
What This Means (2025 FDD)
According to the 2025 Hawaiian Bros Island Grill Franchise Disclosure Document, the Development Agreement governs several aspects of a restaurant's development. Specifically, it outlines the development phase, location, and timeframe for opening a Hawaiian Bros Island Grill restaurant. The Development Agreement also grants the franchisee the right to obtain a franchise, contingent upon completing the site location procedures and securing an approved lease.
For prospective multi-unit franchisees, the Development Agreement also specifies the terms for developing multiple Hawaiian Bros Island Grill locations. To qualify for multi-restaurant development rights, candidates typically need to submit a personal profile and application detailing their personal, financial, and business background.
Furthermore, the Development Agreement mandates that a portion of the franchise fee for each restaurant be paid as a non-refundable deposit upon signing the agreement. This deposit is forfeited if the franchisee fails to meet the development terms outlined in the Development Agreement. For each additional Hawaiian Bros Island Grill restaurant developed, the franchisee must sign the then-current Franchise Agreement, which may differ from the agreement included in the FDD.