What is the Hawaiian Bros Island Grill franchisee's obligation regarding site selection and acquisition?
Hawaiian_Bros_Island_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
You must obtain our approval of the site for your Restaurant before you acquire the site. Unless you qualify and we approve you or your employee to select and source your own sites given your commercial real estate and development experience, you must use a licensed real estate broker to assist you with selecting and securing a site. If we have a preferred real estate broker in your market, you must use our preferred broker. If we do not have a preferred broker in your market, we have the right to approve your real estate broker. You must also use a licensed and experienced real estate attorney to negotiate your lease for the Restaurant location and obtain our approval of the lease before you sign it. We have the right to approve your site surveyors, permit expeditors, and architectural and engineering consultants.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 30–34)
What This Means (2025 FDD)
According to the 2025 Hawaiian Bros Island Grill Franchise Disclosure Document, franchisees must obtain approval of their restaurant site before acquiring it. Unless the franchisee is pre-approved based on commercial real estate and development experience, they are required to use a licensed real estate broker to assist in site selection. If Hawaiian Bros Island Grill has a preferred real estate broker in the market, the franchisee must use that broker. Otherwise, Hawaiian Bros Island Grill retains the right to approve the franchisee's choice of real estate broker.
Furthermore, franchisees must use a licensed and experienced real estate attorney to negotiate the lease for the restaurant location, and Hawaiian Bros Island Grill must approve the lease before it is signed. Hawaiian Bros Island Grill also reserves the right to approve the franchisee's site surveyors, permit expeditors, and architectural and engineering consultants. This ensures that all aspects of site selection and acquisition meet the standards and requirements set by Hawaiian Bros Island Grill, maintaining uniformity and quality across all franchise locations.
These requirements are in place to protect the Hawaiian Bros Island Grill brand and ensure that each location is set up for success. By controlling the site selection and acquisition process, Hawaiian Bros Island Grill can ensure that each restaurant is located in an optimal location and that the lease terms are favorable. This can help to reduce the risk of failure for franchisees and improve the overall performance of the franchise system.