What is the Hawaiian Bros Island Grill franchisee prohibited from doing in non-traditional venues?
Hawaiian_Bros_Island_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
The Development Area in all cases excludes any and all "non-traditional venues" physically located within the Development Area, which we define to include a hospital or medical center, airport, public or private school, university or college campus, airport terminal, train or bus station, convention center, exhibition hall, amusement park, fairground, sports arena, ballpark, military base, state or national park, hotel, lodge, country club, social club, resort, casino, theater or other mass gathering location or event. This means that all such non-traditional venues will not be deemed to be a part of the definition of the Development Area, you may not operate at non-traditional venues, and there are no restrictions on our activities in or at those non-traditional venues, including our right to operate and grant others the right to engage in foodservice operations at those non-traditional venues under the Hawaiian Bros Island Grill trademark or other Marks that we have licensed to you. For this reason, you will not receive an exclusive territory. You may face competition from other franchisees, from outlets that we own, or from other channels of distribution or competitive brands that we control.
Source: Item 12 — TERRITORY (FDD pages 49–53)
What This Means (2025 FDD)
According to the 2025 Hawaiian Bros Island Grill Franchise Disclosure Document, franchisees are prohibited from operating at non-traditional venues. The FDD defines non-traditional venues as locations such as hospitals, airports, schools, universities, convention centers, amusement parks, sports arenas, military bases, hotels, casinos, and theaters. This restriction means that franchisees are not permitted to establish or conduct Hawaiian Bros Island Grill business at these types of locations within their designated Development Area.
This limitation is significant because it clarifies that the franchisor retains the exclusive right to operate or grant others the right to operate Hawaiian Bros Island Grill locations in non-traditional venues. The franchisor's activities in these venues are unrestricted, allowing them to pursue opportunities in these locations without franchisee involvement. This could impact a franchisee's potential market reach and revenue opportunities, as these venues often represent high-traffic areas with significant customer potential.
For a prospective franchisee, this means that their focus must be on securing and operating traditional retail locations. They should be aware that the franchisor can establish Hawaiian Bros Island Grill outlets in non-traditional venues within the franchisee's Development Area without any obligation to share revenue or offer compensation. This aspect should be carefully considered when evaluating the potential profitability and market exclusivity of a Hawaiian Bros Island Grill franchise.