What is the dependency for a Hawaiian Bros Island Grill developer to assign the agreement to a business entity?
Hawaiian_Bros_Island_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
If Developer is a Business Entity, Developer must provide copies of its Charter Documents, any amendments thereto, resolutions of Developer's Board of Directors, managers, general partner or other managing body authorizing Developer to enter into and perform this Agreement, any certificates, buy-sell agreements or other documents restricting the sale or transfer of stock, and any other documents as may be reasonably required by Company to be furnished to Company prior to the execution of this Agreement. Developer further represents, warrants and covenants that it is duly organized and validly existing under the law of the state of its formation and is duly qualified and authorized to do business in each jurisdiction in which its business activities or the nature of the properties it owns requires such qualification.
Source: Item 23 — RECEIPTS (FDD pages 77–262)
What This Means (2025 FDD)
According to the 2025 Hawaiian Bros Island Grill FDD, if the developer is a business entity, they must provide copies of their charter documents, any amendments to those documents, resolutions from the board of directors, managers, general partner, or other managing body authorizing the developer to enter into and perform the agreement.
Additionally, the developer must provide any certificates, buy-sell agreements, or other documents restricting the sale or transfer of stock. They must also furnish any other documents reasonably required by the company before the execution of the agreement. The developer must also represent, warrant, and covenant that it is duly organized and validly existing under the law of the state of its formation and is duly qualified and authorized to do business in each jurisdiction in which its business activities or the nature of the properties it owns requires such qualification.
This requirement ensures that Hawaiian Bros Island Grill is dealing with a legitimate and properly authorized business entity, reducing the risk of legal or financial complications down the line. It also allows the company to assess the financial stability and ownership structure of the developer, which is crucial for a successful franchise partnership. Prospective developers should be prepared to gather and submit all necessary documentation to comply with these requirements.