What is the Hawaiian Bros Island Grill franchisee responsible for regarding the financing of the Restaurant Premises?
Hawaiian_Bros_Island_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
- (b) Restaurant Premises.Franchisee is responsible for locating, financing, developing and purchasing or leasing the Restaurant Premises.
Franchisee acknowledges that selection and procurement of the Restaurant Premises is its responsibility and Company's approval of the Restaurant Premises and rendering of assistance in the selection of the Restaurant Premises does not constitute any representation, guaranty or warranty by Company that the Franchised Restaurant operated at that Restaurant Premises will be successful.
Franchisee's Restaurant Premises must meet the following conditions:
- (1) Company has no responsibility for any lease; it is Franchisee's sole responsibility to evaluate, negotiate and enter into a lease or a purchase agreement for the Restaurant Premises in accordance with the terms of the Development Agreement.
Franchisee must furnish Company with an executed lease within five days after its execution.
- (2) Franchisee must maintain and periodically refresh the building, equipment, fixtures, furnishings, signage and Trade Dress (including the interior and exterior appearance) used in the operation of the Franchised Restaurant in accordance with Company's requirements established periodically and any Inspections or other periodic evaluations of the Restaurant Premises by Company's representatives.
From time to time as Company requires, Franchisee must modernize and/or replace aspects of the Restaurant Premises, Trade Dress and equipment as may be necessary for the Franchised Restaurant and Restaurant Premises to conform to the Standards
for similarly situated new Hawaiian Bros Island Grill franchisees, which modernization and/or replacement may include a comprehensive remodel of the Restaurant Premises.
- (3) Each transfer subject to Section 13 and each renewal under Section 11 are expressly conditioned upon Franchisee's compliance with Company's then-current modernization or replacement requirements.
Source: Item 23 — RECEIPTS (FDD pages 77–262)
What This Means (2025 FDD)
According to the 2025 Hawaiian Bros Island Grill Franchise Disclosure Document, the franchisee is responsible for all aspects of financing the restaurant premises. This includes locating, developing, and either purchasing or leasing the location. Hawaiian Bros Island Grill states explicitly that it bears no responsibility for any lease agreements. The franchisee is solely responsible for evaluating, negotiating, and entering into any lease or purchase agreement, according to the terms laid out in the Development Agreement.
This means a prospective Hawaiian Bros Island Grill franchisee must secure their own funding through loans, personal investment, or other means to cover real estate costs. They must also conduct their own due diligence in evaluating potential locations and negotiating lease terms that are favorable to their business. Hawaiian Bros Island Grill's approval of a location does not guarantee the restaurant's success.
Furthermore, the franchisee is responsible for maintaining and periodically refreshing the restaurant premises, including the building, equipment, fixtures, furnishings, signage, and trade dress. The franchisee must also modernize or replace aspects of the restaurant premises and equipment as required by Hawaiian Bros Island Grill to conform to the standards for new franchisees, which may include a comprehensive remodel. Compliance with these modernization or replacement requirements is a condition for any transfer or renewal of the franchise agreement.