factual

How does Hawaiian Bros Island Grill define 'Transfer' in the context of the Development Agreement?

Hawaiian_Bros_Island_Grill Franchise · 2025 FDD

Answer from 2025 FDD Document

(1) Provision (2) Section in Development Agreement (3) Summary
different from those in your original Development Agreement.
Termination by franchisee. Not applicable Not applicable
Termination by franchisor without cause. Not applicable Not applicable
Termination by franchisor with cause. 9 We can terminate your Development Agreement if you default under your Development Agreement (taking into account the 15-day cure period afforded to certain types of breaches).
g. "Cause" defined – curable defaults. 9(m) You may cure any beach of your Development Agreement, except for those beaches summarized in subsection h of this table. If a breach is curable, you must cure it within 15 days of when we notify you that you are\nin default.
"Cause" defined – non-curable defaults. 9(a)-(l)
  • You have no right to cure the following defaults:
  • failing to sign an approved lease for any Restaurant on or before 180 days before the applicable Development Period End Date (allowing for any approved extensions);
  • signing a lease or proceeding with other development of a franchise location without our written authorization;
  • failing to open any Restaurant in compliance with our requirements, including opening it before the applicable Development Period End Date (allowing for any approved extensions);
  • failing to have open and operating the total cumulative number of Restaurants indicated in your Development Agreement by the applicable Development Period End Date (allowing for any approved extensions);
  • an event of default under your Franchise Agreement(s) that is not cured by the remedial period or is not curable;
  • attempting to transfer or transferring any interest (including ownership or asset interests) in violation of the Development Agreement;
  • bankruptcy; insolvency; a receiver or custodian is appointed for your business or your business assets; or your property is sold to satisfy a debt;
  • violation of any confidentiality, non-competition or non-solicitation obligations by you or any person

Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 57–67)

What This Means (2025 FDD)

According to the 2025 Franchise Disclosure Document, Hawaiian Bros Island Grill considers attempting to transfer or transferring any interest in violation of the Development Agreement as a non-curable default.

This means that if a franchisee attempts to transfer any ownership or asset interests without the franchisor's approval, Hawaiian Bros Island Grill has grounds to terminate the Development Agreement. Unlike some other breaches, the franchisee does not have a 15-day period to correct this default.

This provision protects Hawaiian Bros Island Grill by ensuring that the franchisee cannot simply hand over their development rights to someone who has not been vetted and approved by the company. It is a fairly standard clause in franchise agreements, as franchisors want to maintain control over who is developing their brand.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.
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