Does a Hawaiian Bros Island Grill developer have a right to renew the Development Agreement?
Hawaiian_Bros_Island_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
| (1) Provision | (2) Section in Development Agreement | (3) Summary | |
|---|---|---|---|
| a. | Length of the Development Agreement term. | 2 | Term is based on the time required to open the number of franchise locations you agree to develop under the development schedule. The Expiration Date of your Development Agreement will be printed on the signature page to your Development Agreement. |
| b. | Renewal or extension of the term | (i) 5 | (i) You may request an extension of the Development Period End Date if you experience delays beyond your control in opening a location by such date. |
| (ii) 8 | |||
| (i) Extension of | (ii) If you agree to develop more than one restaurant, you have a conditional right to renew the Development Agreement. | ||
| applicable | |||
| Development | |||
| Period End Date | |||
| (ii) Renewal of | |||
| development term | |||
| c. | Requirements for Developer to renew or extend (i) Requirements for Development Period End Date Extension (ii) Requirements for Developer to | (i) 5 | (i) You must give us prompt written notice of the occurrence of a force majeure event and an estimate of the time required to remedy its effects. We will grant an extension if we determine you have made a good faith effort to comply with the requirements to open your franchise locations(s) but have experienced delays beyond your reasonable control. Such extension will be for the period of time we determine is reasonably necessary to remedy the events effects. |
| (ii) 8 | |||
| renew | (ii) You must have a Development Agreement to develop more than one Restaurant and be in good standing under that agreement; open the full number of Restaurants in compliance with the development schedule; be operating your Restaurants in compliance with our standards; and we must be satisfied that you are capable of completing the additional locations that you propose to develop. To renew, you must give us 60 days' notice and submit a new application, certain financial and other business information, and the proposed number of restaurants you seek to open in the Development Area. If we grant the renewal, you must sign our then-current form of Development Agreement that sets forth the Development Area boundaries, the number of Restaurants, and the development schedule, which may be different than your proposal and may have different terms and conditions that are materially |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 57–67)
What This Means (2025 FDD)
According to the 2025 Hawaiian Bros Island Grill Franchise Disclosure Document, a developer's ability to renew the Development Agreement is conditional. If a developer agrees to develop more than one Hawaiian Bros Island Grill restaurant, they have a conditional right to renew the Development Agreement.
To renew the development term, the developer must have a Development Agreement to develop more than one Restaurant and be in good standing under that agreement. They also need to open the full number of Restaurants in compliance with the development schedule and operate their Restaurants in compliance with Hawaiian Bros Island Grill's standards. Additionally, Hawaiian Bros Island Grill must be satisfied that the developer is capable of completing the additional locations that they propose to develop.
The developer needs to provide Hawaiian Bros Island Grill with 60 days' notice and submit a new application, along with certain financial and other business information, and the proposed number of restaurants they seek to open in the Development Area. If Hawaiian Bros Island Grill grants the renewal, the developer must sign the then-current form of Development Agreement. This new agreement will outline the Development Area boundaries, the number of Restaurants, and the development schedule, which may differ from the developer's proposal and may include materially different terms and conditions.
It's important for potential Hawaiian Bros Island Grill developers to understand that renewal is not guaranteed and depends on meeting specific criteria and the franchisor's approval. The terms of the renewed agreement can also change, potentially impacting the developer's obligations and rights.