What does the company's approval of the restaurant premises for a Hawaiian Bros Island Grill franchise NOT constitute?
Hawaiian_Bros_Island_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee acknowledges that selection and procurement of the Restaurant Premises is its responsibility and Company's approval of the Restaurant Premises and rendering of assistance in the selection of the Restaurant Premises does not constitute any representation, guaranty or warranty by Company that the Franchised Restaurant operated at that Restaurant Premises will be successful.
Franchisee's Restaurant Premises must meet the following conditions:
- (1) Company has no responsibility for any lease; it is Franchisee's sole responsibility to evaluate, negotiate and enter into a lease or a purchase agreement for the Restaurant Premises in accordance with the terms of the Development Agreement.
Franchisee must furnish Company with an executed lease within five days after its execution.
Source: Item 23 — RECEIPTS (FDD pages 77–262)
What This Means (2025 FDD)
According to the 2025 FDD, Hawaiian Bros Island Grill franchisees are responsible for finding, funding, developing, and securing their restaurant premises through purchase or lease. While Hawaiian Bros Island Grill may offer assistance in the selection of a location, their approval of the site does not guarantee the success of the franchise at that location.
This means that even if Hawaiian Bros Island Grill approves a location, the franchisee bears the ultimate responsibility and risk for the site's performance. The franchisee cannot hold Hawaiian Bros Island Grill liable if the restaurant is not successful, even with their prior approval. This underscores the importance of the franchisee conducting their own thorough due diligence and market research before committing to a specific location.
Furthermore, the FDD states that Hawaiian Bros Island Grill has no responsibility for the lease agreement itself. It is solely the franchisee's duty to evaluate, negotiate, and enter into a lease or purchase agreement according to the terms of their Development Agreement. The franchisee must also furnish Hawaiian Bros Island Grill with an executed lease within five days of its execution. This highlights the franchisee's autonomy and accountability in securing and managing their restaurant premises.