What fee is required for a Hawaiian Bros Island Grill franchisee to renew their franchise agreement?
Hawaiian_Bros_Island_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
| (1) Provision | (2) Section in Franchise Agreement | (3) Summary |
|---|---|---|
| a. Length of the | 11(a) | The term is 15 years. The term begins on the scheduled |
| franchise term. | opening date. | |
| b. Renewal or extension of the term. | 11(b), (d) | If you meet certain qualifications, our current franchise agreement allows you to renew your franchise for one additional 15-year term by signing the then-current franchise agreement. This means that you may be asked to sign an agreement with different terms and conditions that are materially different from those in your original agreement. |
| c. Requirements for franchisee to renew or extend. | 11(b)(i)-(viii) | You must: be in good standing; have satisfied all monetary and other material obligations owed to us; give timely notice of your intent to renew; sign our then- current franchise agreement; comply with our then-current training requirements; execute a release of claims against us and our affiliates; comply with all remodeling and redecoration requirements to bring your location into our then-current standards; and pay a renewal fee equal to 50% of the then-current Initial Franchise Fee. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 57–67)
What This Means (2025 FDD)
According to Hawaiian Bros Island Grill's 2025 Franchise Disclosure Document, franchisees who meet certain qualifications can renew their franchise agreement for an additional 15-year term. To renew, a franchisee must sign the then-current franchise agreement, which may contain materially different terms and conditions than the original agreement.
In addition to signing a new agreement, the franchisee must be in good standing and have satisfied all monetary and other material obligations to Hawaiian Bros Island Grill. They must also provide timely notice of their intent to renew, comply with then-current training requirements, and execute a release of claims against Hawaiian Bros Island Grill and its affiliates.
Furthermore, franchisees are required to comply with all remodeling and redecoration requirements to bring their location up to Hawaiian Bros Island Grill's then-current standards. Finally, the franchisee must pay a renewal fee equal to 50% of the then-current Initial Franchise Fee. This fee could be substantial, as initial franchise fees can be a significant investment, and franchisees should be prepared for this cost when considering renewal.