What must Hawaiian Bros Island Grill franchisees do regarding remodeling to renew their franchise agreement?
Hawaiian_Bros_Island_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
e (specified beneath the signature block of this Agreement), at which time this Agreement will automatically terminate. Franchisee must operate the Franchised Restaurant in compliance with this Agreement for the entire Term unless this Agreement is properly terminated under Sections 16 and 17.
- (b) Subject to Section 11(c), Franchisee may renew its franchise for one renewal term of fifteen years; provided that: (i) Franchisee has given Company written notice of its request to renew at least 90 days but not more than 180 days prior to the end of the expiring Term, (ii) Franchisee signs Company's then-current form of franchise agreement (modified to the extent necessary to reflect that the agreement relates to the grant of a renewal), the terms of which may materially differ from this Agreement, including higher fees, (iii) Franchisee or Franchisee's Affiliates are not in default of this Agreement or any other agreement with Company or its Affiliates, (iv) Franchisee has satisfied all monetary and other material obligations owed to Company or its Affiliates on a timely basis during the Term, is in good standing, and has complied with Company's operating and quality Standards and procedures as set forth in the Operations Manual or otherwise, (v) Franchisee complies with Company's then-current training requirements, (vi) Franchisee and each Principal execute a general release of claims against Company and its Affiliates and its respective officers, directors, employees and agents in a form Company prescribes, (vii) Franchisee complies with any remodeling, replacement, modernization or redecoration requirements Company prescribes to bring the Franchised Restaurant and Restaurant Premises into compliance with Company's then-current Standards for new Hawaiian Bros Island Grill franchises, and (viii) Franchisee pays a renewal fee of 50% of the then current Initial Franchise Fee.
- (c) Franchisee's failure or refusal to comply with any of the conditions to renewal stated in Section 11(b), each of which Franchisee acknowledges to be reasonable and material, will be interpreted as a conclusive, irrevocable election on Franchisee's part not to renew the franchise for the Franchised Restaurant.
Source: Item 23 — RECEIPTS (FDD pages 77–262)
What This Means (2025 FDD)
According to the 2025 Hawaiian Bros Island Grill FDD, to renew a franchise agreement for an additional 15-year term, a franchisee must comply with any remodeling, replacement, modernization, or redecoration requirements that Hawaiian Bros Island Grill prescribes. These requirements are designed to bring the Franchised Restaurant and Restaurant Premises into compliance with the company's then-current standards for new Hawaiian Bros Island Grill franchises.
This could potentially involve significant investment on the part of the franchisee to update the restaurant's appearance and functionality. The specific nature and extent of these remodeling requirements are determined by Hawaiian Bros Island Grill at the time of renewal.
Meeting these modernization or replacement requirements is expressly conditioned upon each renewal under Section 11 of the franchise agreement. Failing to comply with these requirements, among other conditions, will be interpreted as an election not to renew the franchise. Therefore, franchisees need to be prepared for potential remodeling expenses when considering renewal.