What happens if Hawaiian Bros Island Grill's relationship with a Provider is terminated?
Hawaiian_Bros_Island_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
Notwithstanding the foregoing or the Term (as defined herein), the Parties agree that (a) the IT Products/Services and IT Support will be provided to Developer with respect to each such Provider through the earlier to occur of (i) the expiration of the current term of Hawaiian Bros' agreement with the applicable Provider (as the same may be renewed, in Hawaiian Bros' sole discretion), or (ii) the relationship with such Provider is terminated (in Hawaiian Bros' sole discretion), and (b) that Hawaiian Bros has no obligation to maintain, and may amend or terminate without replacement, in its sole discretion, its current agreements or relationships with the Providers of the IT Products/Services or the support and services it provides with respect thereto.
Source: Item 23 — RECEIPTS (FDD pages 77–262)
What This Means (2025 FDD)
According to the 2025 FDD, Hawaiian Bros Island Grill utilizes third-party providers for IT services and support to its developers and franchisees. The agreement between Hawaiian Bros Island Grill and the developer specifies that the provision of IT Products/Services and IT Support from these providers is subject to certain conditions. Specifically, these services will be available to the developer until the earlier of two events: either the expiration of the current term of Hawaiian Bros Island Grill's agreement with the provider (including any renewals at Hawaiian Bros Island Grill's discretion) or the termination of the relationship with that provider, which is also at Hawaiian Bros Island Grill's sole discretion.
This means that Hawaiian Bros Island Grill has the flexibility to change or discontinue its agreements with IT service providers. The agreement explicitly states that Hawaiian Bros Island Grill is not obligated to maintain these agreements and can amend or terminate them without providing a replacement. This clause gives Hawaiian Bros Island Grill significant control over its IT service arrangements and the ability to adapt to changing business needs or market conditions.
For a prospective Hawaiian Bros Island Grill franchisee, this implies a potential risk. The IT Products/Services and IT Support they rely on could be altered or discontinued if Hawaiian Bros Island Grill decides to change providers or terminate an existing agreement. It would be prudent for potential franchisees to inquire about the stability of these provider relationships and whether Hawaiian Bros Island Grill has plans to change or terminate any of these agreements in the near future. Understanding the potential impact of such changes on their operations is crucial for making an informed investment decision.