In the context of Hawaiian Bros Island Grill, what does 'control' mean in relation to an Affiliate?
Hawaiian_Bros_Island_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchise Agreement means the Franchise Agreement between Company and Developer or any of its Affiliates under which Developer or any of its Affiliates purchases the franchised rights to operate a Hawaiian Bros Restaurant.
Ownership Interests means (i) in relation to a corporation, the ownership of shares of stock in the corporation; (ii) in relation to a partnership, the ownership of a general or limited partnership interest; (iii) in relation to a trust, the ownership of the beneficial interest of such trust; (iv) in relation to a limited liability company, the ownership of a membership interest; (v) in relation to any other Business Entity, the ownership of any equity interest therein; and (vi) with respect to any Business Entity, any right or option
Principal means any Person with a direct or indirect Ownership Interest in Developer, if Developer is a Business Entity, including any Controlling Principal.
Source: Item 23 — RECEIPTS (FDD pages 77–262)
What This Means (2025 FDD)
I am unable to provide a definition of 'control' in relation to an Affiliate for Hawaiian Bros Island Grill, according to the 2025 Franchise Disclosure Document excerpts provided. While the term 'Affiliate' is used in the document, the specific meaning of 'control' in this context is not defined.
However, the FDD does define other terms that are related to business structure and ownership, such as 'Ownership Interests' which includes various forms of equity ownership in different types of business entities. It also defines 'Principal' as any Person with a direct or indirect Ownership Interest in Developer, if Developer is a Business Entity, including any Controlling Principal.
A prospective Hawaiian Bros Island Grill franchisee should ask the franchisor for a clear definition of 'control' as it relates to Affiliates. Understanding this definition is crucial for determining who has the authority to make decisions and manage the franchise, and for ensuring compliance with the franchise agreement.