What fee must a Hawaiian Bros Island Grill franchisee pay to renew the franchise?
Hawaiian_Bros_Island_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
e (specified beneath the signature block of this Agreement), at which time this Agreement will automatically terminate. Franchisee must operate the Franchised Restaurant in compliance with this Agreement for the entire Term unless this Agreement is properly terminated under Sections 16 and 17.
- (b) Subject to Section 11(c), Franchisee may renew its franchise for one renewal term of fifteen years; provided that: (i) Franchisee has given Company written notice of its request to renew at least 90 days but not more than 180 days prior to the end of the expiring Term, (ii) Franchisee signs Company's then-current form of franchise agreement (modified to the extent necessary to reflect that the agreement relates to the grant of a renewal), the terms of which may materially differ from this Agreement, including higher fees, (iii) Franchisee or Franchisee's Affiliates are not in default of this Agreement or any other agreement with Company or its Affiliates, (iv) Franchisee has satisfied all monetary and other material obligations owed to Company or its Affiliates on a timely basis during the Term, is in good standing, and has complied with Company's operating and quality Standards and procedures as set forth in the Operations Manual or otherwise, (v) Franchisee complies with Company's then-current training requirements, (vi) Franchisee and each Principal execute a general release of claims against Company and its Affiliates and its respective officers, directors, employees and agents in a form Company prescribes, (vii) Franchisee complies with any remodeling, replacement, modernization or redecoration requirements Company prescribes to bring the Franchised Restaurant and Restaurant Premises into compliance with Company's then-current Standards for new Hawaiian Bros Island Grill franchises, and (viii) Franchisee pays a renewal fee of 50% of the then current Initial Franchise Fee.
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 franchisee may renew their franchise for an additional 15-year term if they meet certain conditions. One of these conditions is paying a renewal fee.
The renewal fee is 50% of the then-current Initial Franchise Fee. The FDD states that the Initial Franchise Fee is currently $50,000. Therefore, if the initial franchise fee remains the same at the time of renewal, the renewal fee would be $25,000.
However, the FDD also notes that the terms of the renewal agreement, including fees, may differ materially from the original agreement and could include higher fees. This means the renewal fee could be higher than 50% of the original initial franchise fee if Hawaiian Bros Island Grill increases the initial franchise fee before the renewal period. The franchisee must also comply with remodeling, modernization, and training requirements at their own expense as part of the renewal conditions.