After assignment of the Franchise Agreement, what obligations does Hawaiian Bros Island Grill retain?
Hawaiian_Bros_Island_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
We have the right to assign your Franchise Agreement at any time without your consent, and we will have no further obligations under the contract, except for any liabilities that already accrued.
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 57–67)
What This Means (2025 FDD)
According to the 2025 FDD, Hawaiian Bros Island Grill has the right to assign the Franchise Agreement at any time without the franchisee's consent. After assignment, Hawaiian Bros Island Grill will have no further obligations under the contract, except for any liabilities that have already accrued.
This means that Hawaiian Bros Island Grill can transfer the agreement to another party, such as another company or individual, without needing the franchisee's approval. This is a standard practice in franchising, as it allows the franchisor flexibility in managing its business and assets.
However, Hawaiian Bros Island Grill remains responsible for any liabilities that occurred before the assignment. For example, if Hawaiian Bros Island Grill owed the franchisee money before the assignment, they would still be obligated to pay that debt even after the agreement is transferred. This provision protects the franchisee from being negatively impacted by the assignment of the Franchise Agreement.