For a Hawaiian Bros Island Grill development schedule, what deposit is required for the franchise fee?

According to the 2025 Hawaiian Bros Island Grill FDD, the franchise fee deposit required for a development schedule is detailed in Exhibit B. The deposit is equivalent to 100% of the franchise fee for the first restaurant and 50% of the franchise fee for each subsequent restaurant in the schedule. This deposit is payable when the Development Agreement is signed.

This deposit secures the developer's rights to open multiple Hawaiian Bros Island Grill locations within a specific area according to an agreed-upon schedule. The deposit is non-refundable, emphasizing the commitment required from the developer. However, upon the timely opening of each restaurant, Hawaiian Bros Island Grill will credit the deposit amount towards the franchise fee due under the Franchise Agreement for that specific location.

If a developer fails to adhere to the development schedule and does not open a Hawaiian Bros Island Grill restaurant on time, they will forfeit the credit associated with that location's deposit. The remaining franchise fee, after applying the credit from the deposit, must be paid via certified check, wire transfer, or electronic funds transfer when signing the individual Franchise Agreement for each restaurant. This structure incentivizes developers to meet their development obligations while providing a mechanism for Hawaiian Bros Island Grill to recoup costs if the developer fails to perform.