Does the estimated rent for Hawaiian Bros Island Grill include security deposits?
Hawaiian_Bros_Island_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
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Rent varies widely from location to location depending upon the size, condition, and location of the leased premises, but we estimate the rent (including common area maintenance and other similar charges) to range from $9,224 to $37,570, per month. If you elect to purchase the site for your Restaurant, your land acquisition costs will vary depending upon a multitude of factors including the size and location of the property and the availability of financing on commercially reasonable terms. We are unable to estimate the cost of purchasing a site. The cost per square foot of commercial space and the related buildout costs vary considerably depending upon the location and market conditions affecting commercial property. This figure does not include the cost of security deposits of one or two months' rent which may be required by your landlord. Your estimated construction, remodeling and site improvement costs and rent above is based on our affiliate-owned locations that were constructed by remodeling existing real estate sites, and in some cases, by build-to-suit developers that then lease the finished Restaurant to our affiliates with rents at the high end of the range listed above to cover their land acquisition, development costs, fees, and
Source: Item 7 — Estimated Initial Investment (FDD pages 23–30)
What This Means (2025 FDD)
According to Hawaiian Bros Island Grill's 2025 Franchise Disclosure Document, the estimated rent range of $9,224 to $37,570 per month does not include security deposits. The document specifies that landlords may require security deposits, typically one or two months' rent, in addition to the estimated rent.
Prospective Hawaiian Bros Island Grill franchisees should be aware that the initial investment for rent could be higher than the estimated range due to these potential security deposits. It is important to factor in these additional costs when planning the initial capital requirements for the franchise. The FDD also mentions that the higher end of the rent range is based on build-to-suit arrangements where developers lease the finished restaurant to Hawaiian Bros Island Grill affiliates, which covers the developer's land acquisition, development costs, fees, and finance charges.
Furthermore, the document includes a table outlining security and utility deposits, estimating them to range from $9,000 to $40,000, payable in a lump sum as incurred to the landlord or utility companies. This reinforces that security deposits are separate from the monthly rent estimate and represent an additional upfront cost. Franchisees should budget accordingly and clarify the specific security deposit requirements with their prospective landlord during lease negotiations.
In summary, while the estimated monthly rent for a Hawaiian Bros Island Grill location is between $9,224 and $37,570, franchisees must also account for potential security deposits, which are not included in this estimate and can range from $9,000 to $40,000. These deposits are typically required by landlords and utility companies and should be considered as part of the initial investment.