Does the Hawaiian Bros Island Grill franchisee have any control over the 'Program Adjustment Amount'?
Hawaiian_Bros_Island_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
- (2) If, in connection with an Area Cooperative's formation or functioning, its members are unable to resolve differences with respect to any disagreement over organization, administration, "spill" policy, contribution waivers or exceptions, budget or other matters within 45 days, the issue will be referred to Company for resolution. Company's decision with respect to the issue's resolution will be binding on all members of the Area Cooperative. In addition, Company reserves the right to review each Area Cooperative's contribution rate on an annual basis.
Source: Item 23 — RECEIPTS (FDD pages 77–262)
What This Means (2025 FDD)
Based on the 2025 Hawaiian Bros Island Grill Franchise Disclosure Document, franchisees may have limited control over certain aspects of Area Cooperative advertising programs. While franchisees are required to participate in Area Cooperatives if established for their region, Hawaiian Bros Island Grill retains significant authority over these cooperatives.
Specifically, if members of an Area Cooperative cannot resolve disagreements regarding organization, administration, budget, or other matters within 45 days, the issue is referred to Hawaiian Bros Island Grill for a binding resolution. Additionally, Hawaiian Bros Island Grill reserves the right to review each Area Cooperative's contribution rate annually.
This means that while franchisees can participate in the Area Cooperative and voice their opinions, Hawaiian Bros Island Grill ultimately has the final say in resolving disputes and can influence the contribution rates. This setup ensures brand consistency and control but may limit the individual franchisee's ability to directly influence the cooperative's financial decisions.