Does the Hawaiian Bros Island Grill Franchisor have the right to enforce the agreement?
Hawaiian_Bros_Island_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
As such, Landlord and Tenant acknowledge and agree that Franchisor is an intended third-party beneficiary of this Rider with an independent right, but not obligation, to enforce any and all of its terms.
Source: Item 23 — RECEIPTS (FDD pages 77–262)
What This Means (2025 FDD)
According to the 2025 FDD, Hawaiian Bros Island Grill has the right to enforce the terms of the lease agreement between the franchisee (Tenant) and the landlord. As stated in Exhibit D, Lease Rider, Hawaiian Bros Franchising, LLC, as the Franchisor, is considered a third-party beneficiary of the lease rider. This grants Hawaiian Bros Island Grill an independent right to enforce any and all terms outlined in the lease rider.
This provision ensures that Hawaiian Bros Island Grill can protect its interests and brand standards, even if it is not a direct party to the lease agreement. For example, Hawaiian Bros Island Grill can ensure the premises are used in a manner consistent with its brand, including the installation and use of trademarks, service marks, signs, and decor items. This also allows Hawaiian Bros Island Grill to address any defaults or issues that may arise under the lease, helping to maintain the stability and consistency of its franchise locations.
For a prospective Hawaiian Bros Island Grill franchisee, this means that the franchisor has a vested interest in the franchisee's lease and business operations. The franchisee must adhere to the brand's standards and requirements, as Hawaiian Bros Island Grill has the authority to enforce these aspects through the lease rider. This arrangement provides an additional layer of oversight and support, but also requires the franchisee to maintain compliance with both the franchise agreement and the lease terms to avoid potential enforcement actions from either the landlord or Hawaiian Bros Island Grill.