What events are considered an 'Event of Force Majeure' for Hawaiian Bros Island Grill?
Hawaiian_Bros_Island_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
exercise the rights granted in Section 9.
After this Agreement expires or terminates, Developer's right to develop Hawaiian Bros Restaurants in the Development Area ends. Company then may grant to others development rights and Hawaiian Bros Restaurant franchises in Developer's former Development Area and may open its own Hawaiian Bros Restaurants there even if Developer has completed its development obligations on time and in strict compliance with this Agreement. However, expiration or termination of Developer's development rights does not affect the terms of any Franchise Agreement.
5. FORCE MAJEURE.
(a) If the opening of a Hawaiian Bros Restaurant is delayed beyond the relevant Development Period End Date on account of a natural disaster, fire or other casualty, labor dispute, materials shortage, or similar event over which Developer lacks control (such "force majeure" events do not under any circumstances include Developer's financing delays or difficulties), the Development Period End Date
Source: Item 23 — RECEIPTS (FDD pages 77–262)
What This Means (2025 FDD)
According to the 2025 Hawaiian Bros Island Grill Franchise Disclosure Document, a 'force majeure' event is defined as a natural disaster, fire or other casualty, labor dispute, materials shortage, or similar event that is beyond the developer's control. These events can lead to a delay in the opening of a Hawaiian Bros Island Grill restaurant beyond the Development Period End Date. However, the document explicitly states that the developer's financing delays or difficulties are not considered 'force majeure' events under any circumstances.
If such a 'force majeure' event occurs, the Development Period End Date may be extended for a duration deemed reasonably necessary by Hawaiian Bros Island Grill to address the event's impact. To be eligible for this extension, the developer must promptly provide written notice to Hawaiian Bros Island Grill about the event and include an estimate of the time needed to remedy its effects.
It's important to note that any extension granted due to a 'force majeure' event applies only to the specific Hawaiian Bros Island Grill restaurant whose development is affected. The extension does not delay the Development Period End Date for any other Hawaiian Bros Island Grill restaurants the developer may be planning to open. This ensures that the impact of unforeseen events is contained and doesn't disrupt the overall development schedule for multiple locations.