What fees must a Hawaiian Bros Island Grill franchisee pay when renewing the Development Agreement?
Hawaiian_Bros_Island_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
After your Development Agreement expires or terminates, your right to develop Restaurants in the Development Area ends. We then may grant development rights and Restaurant franchises to others in the Development Area and may open our own Restaurants there. Expiration or termination of your development rights does not affect the status of your franchise for any Restaurant you are operating when the Development Agreement expires or terminates. You have a conditional right to renew the right to develop more Restaurants in the Development Area under a new Development Agreement if you meet the following conditions: you opened all the Restaurants in the original Development Agreement in compliance with the schedule; you did not default under the Development Agreement; you are operating all of your Restaurants in substantial compliance with their Franchise Agreements; you financially qualify to develop the number of Restaurants proposed; you notify us of your request to renew at least 60 days before the date you are required to sign the lease for the last Restaurant under your original Development Agreement; and you sign the new Development Agreement, pay us the new development fee and deliver to us a release of all claims by you and your affiliates, all within 20 calendar days (but not sooner than 15 days) after we send the new Development Agreement to you.
Source: Item 12 — TERRITORY (FDD pages 49–53)
What This Means (2025 FDD)
According to the 2025 Hawaiian Bros Island Grill Franchise Disclosure Document, a franchisee has a conditional right to renew the right to develop more Restaurants in the Development Area under a new Development Agreement. To do so, the franchisee must meet several conditions, including opening all Restaurants in the original Development Agreement on schedule, not being in default under the Development Agreement, and operating all Restaurants in substantial compliance with their Franchise Agreements. The franchisee must also financially qualify to develop the proposed number of Restaurants.
Specifically regarding fees, the franchisee must pay Hawaiian Bros Island Grill the new development fee. Additionally, the franchisee must deliver a release of all claims by them and their affiliates. These actions, along with signing the new Development Agreement, must occur within 20 calendar days (but not sooner than 15 days) after Hawaiian Bros Island Grill sends the new Development Agreement to the franchisee.
It is important for prospective Hawaiian Bros Island Grill franchisees to understand these renewal conditions and associated costs, as failing to meet these requirements will prevent them from renewing their Development Agreement and expanding their operations within their Development Area. Franchisees should clarify the amount of the new development fee with Hawaiian Bros Island Grill, as this figure is not specified in this section but is critical for financial planning.