What constitutes a change in the terms of an Offer that requires notification to Hawaiian Bros Island Grill?
Hawaiian_Bros_Island_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
- (vi) If the Option is not exercised, the Principal or Developer, as applicable, will immediately notify Company in writing of any change in the terms of an Offer.
For purposes of clarification, a change in the direct or indirect Ownership Interests of the proposed transferee will be deemed a change in the terms of an Offer.
Any material change in the terms of an Offer will cause it to be deemed a new Offer, conferring upon Company a new Option pursuant to this Section.
The Option Period with respect to the new Option will be deemed to commence on the day that Company receives written notice of a material change in the terms of the original Offer.
Company will determine whether a change in an Offer is material in its sole discretion.
Source: Item 23 — RECEIPTS (FDD pages 77–262)
What This Means (2025 FDD)
According to the 2025 Franchise Disclosure Document, if a Principal or Developer does not exercise their option to sell Interests to a third party, they must immediately notify Hawaiian Bros Island Grill in writing of any changes to the terms of the offer. A change in the direct or indirect Ownership Interests of the proposed transferee is specifically considered a change in the terms of an offer.
Any material change in the terms of an offer is treated as a new offer, which gives Hawaiian Bros Island Grill a new option to consider the offer. The option period for this new offer begins when Hawaiian Bros Island Grill receives written notice of the material change.
Hawaiian Bros Island Grill has the sole discretion to determine whether a change in an offer is material. This means that any alteration to the original offer, especially those affecting ownership, must be promptly communicated to Hawaiian Bros Island Grill, as it could trigger a new evaluation period for the franchise.