What criteria must a proposed transferee meet to be approved by Hawaiian Bros Island Grill?
Hawaiian_Bros_Island_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
Without limiting Company's right to consent or withhold consent to a proposed transfer, whether to an individual or any Business Entity, Company's consent to any transfer will be conditioned on the following: ( 1 ) a proposed transferee must meet Company's then-current criteria for new franchisees entering the System, (2) Developer must satisfy all of its outstanding obligations to Company or its Affiliates, (3) the transferee (or Developer, if an Ownership Interest is transferred) must execute Company's then-current form of Development Agreement and other collateral agreements Company may then require, (4) Developer and each Principal must give Company an unconditional, general release, in form and substance satisfactory to Company, of all claims they may have against Company and its Affiliates and their respective owners, directors, officers, and agents, and (5) Developer must have complied with any other conditions that Company reasonably requires from time to time as part of its transfer policies.
Source: Item 23 — RECEIPTS (FDD pages 77–262)
What This Means (2025 FDD)
According to Hawaiian Bros Island Grill's 2025 Franchise Disclosure Document, any transfer of interest in a franchise is subject to the company's approval. Hawaiian Bros Island Grill will assess a proposed transferee based on several criteria. If the proposed transferee is a new franchisee, they must meet the then-current criteria for new franchisees entering the Hawaiian Bros Island Grill system. If the proposed transferee is an existing franchisee, they must meet the company's then-current criteria for existing franchisees desiring to expand within the system beyond their existing Development Agreement commitments.
In addition to meeting the standard criteria for new or expanding franchisees, the franchisee looking to transfer must also fulfill several obligations. They must satisfy all outstanding obligations to Hawaiian Bros Island Grill or its affiliates. The franchised restaurant and premises must comply with the company's current standards. The proposed transferee and their general manager must also satisfactorily complete Hawaiian Bros Island Grill's training program. The transferee must execute the company's current form of Franchise Agreement, which will limit the term to the unexpired portion of the original term, along with other required agreements.
Furthermore, each controlling principal of the transferee and their spouse, if any, must execute a guaranty. The transferring franchisee, its affiliates, and each principal must provide Hawaiian Bros Island Grill with an unconditional, general release of all claims against the company and its affiliates. Finally, the transferring franchisee must comply with any other conditions that Hawaiian Bros Island Grill reasonably requires as part of its transfer policies. These conditions ensure that the new franchisee is well-prepared and that Hawaiian Bros Island Grill's interests are protected during and after the transfer.