What costs related to training are the responsibility of the Hawaiian Bros Island Grill franchisee?
Hawaiian_Bros_Island_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
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| (1) | (2) | (3) | (4) | (5) |
|---|---|---|---|---|
| Type of expenditure | Amount | Method of payment | When due | To whom payment is to be made |
| Construction Document | ||||
| Review Fee (13) | ||||
| Training Expenses – managers' salaries, travel, meal and lodging expenses for 8 weeks (14) | $29,000 to $60,000 | As arranged | As incurred | Providers of travel, lodging, a |
Source: Item 7 — Estimated Initial Investment (FDD pages 23–30)
What This Means (2025 FDD)
According to the 2025 Hawaiian Bros Island Grill Franchise Disclosure Document, while the initial franchise fee covers the training for the Designated Principal, other Controlling Principals, and all salaried managers (including the General Manager and Assistant General Manager), the franchisee is responsible for covering certain expenses. These expenses include the costs of transportation, lodging, and food for the trainees. Additionally, the franchisee must cover the wages for their employees during the training period. The FDD estimates these training expenses to range from $29,000 to $60,000 for 8 weeks of training.
This means that a prospective Hawaiian Bros Island Grill franchisee needs to budget not only for the time that their managers and principals will be away from the restaurant for training but also for the direct costs associated with their travel and living expenses. The estimated range of $29,000 to $60,000 suggests that these costs can vary significantly, likely depending on factors such as the distance to the training location, the type of accommodations chosen, and the number of employees requiring training. It is important to note that all salaried managers must complete the designated training program to the satisfaction of Hawaiian Bros Island Grill and become certified by their training department.
Furthermore, the FDD mentions that the franchisee is required to reimburse Hawaiian Bros Island Grill for per diem meal and travel incidentals, lodging, travel and car rental costs, and in certain circumstances, wages incurred by Hawaiian Bros Island Grill's pre-opening trainers. This reimbursement is related to the pre-opening assistance team provided by Hawaiian Bros Island Grill. Therefore, franchisees should carefully review Item 5 of the FDD to understand the full scope of these pre-opening assistance services and the associated reimbursement requirements. Budgeting for these training-related expenses is a crucial part of the initial investment and operational planning for a new Hawaiian Bros Island Grill franchise.