What is the effect of Hawaiian Bros Island Grill's sole discretion on renewing agreements with Providers?
Hawaiian_Bros_Island_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
Notwithstanding the foregoing or the Term (as defined herein), the Parties agree that (a) the IT Products/Services and IT Support will be provided to Developer with respect to each such Provider through the earlier to occur of (i) the expiration of the current term of Hawaiian Bros' agreement with the applicable Provider (as the same may be renewed, in Hawaiian Bros' sole discretion), or (ii) the relationship with such Provider is terminated (in Hawaiian Bros' sole discretion), and (b) that Hawaiian Bros has no obligation to maintain, and may amend or terminate without replacement, in its sole discretion, its current agreements or relationships with the Providers of the IT Products/Services or the support and services it provides with respect thereto.
Source: Item 23 — RECEIPTS (FDD pages 77–262)
What This Means (2025 FDD)
According to the 2025 FDD, Hawaiian Bros Island Grill has sole discretion regarding the renewal of agreements with IT service providers. Specifically, the IT Products/Services and IT Support will be provided to the Developer through the earlier of (i) the expiration of the current term of Hawaiian Bros' agreement with the applicable Provider (as the same may be renewed, in Hawaiian Bros' sole discretion), or (ii) the relationship with such Provider is terminated (in Hawaiian Bros' sole discretion). Hawaiian Bros Island Grill also has no obligation to maintain, and may amend or terminate without replacement, in its sole discretion, its current agreements or relationships with the Providers of the IT Products/Services or the support and services it provides with respect thereto.
For a prospective Hawaiian Bros Island Grill franchisee, this means that the specific IT services and support they receive are subject to change based on Hawaiian Bros Island Grill's decisions regarding its agreements with third-party providers. Hawaiian Bros Island Grill can choose not to renew an agreement, terminate a relationship, or amend the services provided, all at its discretion.
This clause carries both risks and benefits. The risk is that a franchisee could lose access to a preferred IT service or experience a change in support quality if Hawaiian Bros Island Grill alters its provider relationships. The benefit is that Hawaiian Bros Island Grill can adapt its IT services to leverage potentially better or more cost-effective solutions, which could ultimately benefit franchisees. Franchisees should stay informed about any potential changes to IT services and understand that the specific offerings are not guaranteed for the entire term of their franchise agreement.