What must a franchisee complete before obtaining a Hawaiian Bros Island Grill franchise?
Hawaiian_Bros_Island_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
A Hawaiian Bros Island Grill franchise entitles you to operate one Restaurant at an approved location. Our Development Agreement gives you the right and obligation to develop one or more Restaurants and governs a Restaurant's development phase, location, and timeframe. The Development Agreement gives you the right to obtain a franchise for a Restaurant after you complete our site location procedures and sign a lease for a location that we have approved. After you sign a lease, you must sign a Franchise Agreement for the Restaurant as soon as the federally mandated, and any applicable state mandated, waiting period has passed. You must sign our Franchise Agreement in the form being offered at the applicable time for each Restaurant you open. Each Franchise Agreement gives you the right to own and operate a single Restaurant at a specific location.
Your Development Agreement also states the terms on which you are required to develop more than one Restaurant if we allow you to become a multi-Restaurant operator. We offer multi-Restaurant development rights only to qualified persons. Typically, a prospective franchisee sends us a personal profile and application setting forth personal, financial, business, and other information on the prospective franchisee and its owners. You are required to pay a portion of the franchise fee for each Restaurant you have the right and obligation to develop under a Development Agreement as a deposit at the time of signing the Development Agreement. No portion of the franchise fee deposit is refundable if you fail to develop Restaurants according to your Development Agreement's terms. You must sign our then-current form of Franchise Agreement for each additional Restaurant you develop. That form may differ from the form of Franchise Agreement included in this disclosure document.
Source: Item 1 — THE FRANCHISOR, AND ANY PARENT, PREDECESSORS AND AFFILIATES (FDD pages 8–10)
What This Means (2025 FDD)
According to the 2025 Hawaiian Bros Island Grill FDD, a prospective franchisee must complete several steps before they can obtain a franchise. First, they must adhere to the franchisor's site location procedures. This likely involves submitting potential locations for approval and working with Hawaiian Bros Island Grill to ensure the site meets their criteria. Next, the franchisee must sign a lease for a location that Hawaiian Bros Island Grill has approved. Securing an approved location is a critical step, as it commits the franchisee to a specific site and its associated costs.
After signing the lease, the franchisee must then sign the Franchise Agreement. However, this can only occur after the federally mandated and any applicable state-mandated waiting period has passed. This waiting period is designed to give the franchisee time to review the FDD and Franchise Agreement before making a final commitment. The Franchise Agreement must be the form that Hawaiian Bros Island Grill is offering at that time, which could potentially change over time.
Finally, the franchisee is obligated to develop one or more Restaurants according to the Development Agreement's terms. If the franchisee fails to develop the Restaurants as agreed, they risk losing the non-refundable portion of the franchise fee deposit paid at the time of signing the Development Agreement. This highlights the importance of carefully considering the development schedule and obligations outlined in the Development Agreement before signing.