How will GIFTCO pay a Hawaiian Bros Island Grill franchisee for redeemed Gift Cards?

Based on the 2025 Franchise Disclosure Document, the relationship between Hawaiian Bros Island Grill franchisees and GIFTCO is defined within the context of a Gift Card Program. According to the agreement, GIFTCO is the issuer of the gift cards, making them responsible for the financial value represented by the cards. The Hawaiian Bros Island Grill franchisee, in this arrangement, acts as an agent for GIFTCO, primarily responsible for selling and redeeming these gift cards at their restaurant locations.

As the agent, the franchisee is obligated to honor the gift cards presented by customers as payment for food and beverages. However, the FDD excerpt does not specify the exact mechanism or schedule by which GIFTCO reimburses the franchisee for the value of the redeemed gift cards.

While the agreement clarifies that GIFTCO is liable for the gift card value, the absence of details regarding the reimbursement process means prospective Hawaiian Bros Island Grill franchisees should seek clarification from the franchisor. Specifically, they should inquire about the frequency of payments, the documentation required for reimbursement, and any potential fees or deductions associated with the gift card program. Understanding these details is crucial for managing cash flow and ensuring accurate financial reporting.