factual

Are all breaches of the Hawaiian Bros Island Grill Franchise Agreement curable?

Hawaiian_Bros_Island_Grill Franchise · 2025 FDD

Answer 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.
d. Termination by Not applicable Not applicable
franchisee.
e. Termination by Not applicable Not applicable
franchisor without
cause.
f. Termination by franchisor with cause. 16(b), 17 We can terminate your Franchise Agreement if you default and the default is not cured before the expiration of the related cure period. We can terminate your Franchise Agreement immediately if your default is non- curable under the Franchise Agreement.
g. “Cause” defined – curable defaults. 16(a)-(b) All breaches of the Franchise Agreement are curable, except those summarized in subsection h. of this table. If the breach is curable, you must cure it within 30 days, unless one of the following shorter cure periods applies: • You have 5 days to cure any monetary defaults. • You have 24 hours to cure defaults related to violations of laws, regulations, or standards relating to health, sanitation, or safety; and defaults related to

Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 57–67)

What This Means (2025 FDD)

According to the 2025 Hawaiian Bros Island Grill Franchise Disclosure Document, not all breaches of the Franchise Agreement are curable. Hawaiian Bros Island Grill can terminate the Franchise Agreement immediately if a default is non-curable.

For breaches that are curable, the franchisee typically has 30 days to remedy the default. However, there are exceptions with shorter cure periods. Monetary defaults must be cured within 5 days. Defaults related to violations of laws, regulations, or standards concerning health, sanitation, or safety, as well as defaults related to unauthorized transfers, must be cured within 24 hours.

This distinction between curable and non-curable defaults is important for prospective Hawaiian Bros Island Grill franchisees. It highlights the need to understand the specific terms of the Franchise Agreement and the potential consequences of non-compliance. Franchisees should be aware of the types of breaches that could lead to immediate termination and the shorter cure periods for certain violations.

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.