Are the fees described in Item 6 of the Hawaiian Bros Island Grill FDD refundable?
Hawaiian_Bros_Island_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
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Notes:
- (1) All fees described in this Item 6 are non-refundable. Except as otherwise provided in this Item 6, all fees are imposed uniformly and collected by and payable to us; however, we have and we may in the future waive or reduce some or all of these fees for a particular franchisee if, in our sole discretion, we decide it is appropriate to do so.
- (2) As provided in this Item 6, your Royalty Fee, Advertising and Development Fund (Ad Fund) contribution and IT Services and Support Fee must be paid by an electronic funds transfer (EFT) from your designated bank account. This requires you to provide us with the amount of Gross Sales for your Restaurant(s) in a report that includes the information we request in the format we request it, by a particular deadline. If you do not submit the report by the deadline, we will estimate your Gross Sales for the week, deduct the Royalty Fee from your bank account via EFT based on that estimate, and you will be charged a $250 non-refundable fee that will be withdrawn in the same manner. After you provide us with the missed Gross Sales report, we have the option to adjust our estimate and settle the acc
Source: Item 6 — OTHER FEES (FDD pages 16–23)
What This Means (2025 FDD)
According to Hawaiian Bros Island Grill's 2025 Franchise Disclosure Document, the fees outlined in Item 6 are generally non-refundable. The FDD specifies that all fees described in Item 6 are non-refundable, with the exception of instances specifically noted within Item 6 itself. However, Hawaiian Bros Island Grill retains the discretion to waive or reduce these fees for individual franchisees if they deem it appropriate.
This non-refundable policy means that a prospective Hawaiian Bros Island Grill franchisee should carefully consider their financial planning and operational strategies, as these fees will not be returned under normal circumstances. It is important to note that while the franchisor can choose to waive or reduce fees, this is not guaranteed and is based on their sole discretion.
One specific fee mentioned is a $250 non-refundable fee charged if a franchisee fails to submit their Gross Sales report by the specified deadline. This fee is automatically withdrawn via electronic funds transfer (EFT) along with the estimated Royalty Fee. This highlights the importance of adhering to reporting deadlines to avoid incurring additional costs. While most fees are uniformly imposed, the franchisor's ability to make exceptions introduces a degree of variability that franchisees should be aware of.
In summary, franchisees should be prepared to pay all Item 6 fees without expectation of a refund, while also understanding that Hawaiian Bros Island Grill has the option to adjust these fees on a case-by-case basis. Franchisees should maintain open communication with the franchisor to understand any potential opportunities for fee adjustments and to ensure compliance with all reporting requirements to avoid penalties.