If a Hawaiian Bros Island Grill franchisee defaults, is there a cure period?
Hawaiian_Bros_Island_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
| (1) Provision | (2) Section in Franchise Agreement | (3) Summary |
|---|---|---|
| a. Length of the | 11(a) | The term is 15 years. The term begins on the scheduled |
| franchise term. | opening date. | |
| b. Renewal or extension of the term. | 11(b), (d) | If you meet certain qualifications, our current franchise agreement allows you to renew your franchise for one additional 15-year term by signing the then-current franchise agreement. This means that you may be asked to sign an agreement with different terms and conditions that are materially different from those in your original agreement. |
| c. Requirements for franchisee to renew or extend. | 11(b)(i)-(viii) | You must: be in good standing; have satisfied all monetary and other material obligations owed to us; give timely notice of your intent to renew; sign our then- current franchise agreement; comply with our then-current training requirements; execute a release of claims against us and our affiliates; comply with all remodeling and redecoration requirements to bring your location into our then-current standards; and pay a renewal fee equal to 50% of the then-current Initial Franchise Fee. |
| d. Termination by | Not applicable | Not applicable |
| franchisee. | ||
| e. Termination by | Not applicable | Not applicable |
| franchisor without | ||
| cause. | ||
| f. Termination by franchisor with cause. | 16(b), 17 | We can terminate your Franchise Agreement if you default and the default is not cured before the expiration of the related cure period. We can terminate your Franchise Agreement immediately if your default is non- curable under the Franchise Agreement. |
| g. “Cause” defined – curable defaults. | 16(a)-(b) | All breaches of the Franchise Agreement are curable, except those summarized in subsection h. of this table. If the breach is curable, you must cure it within 30 days, unless one of the following shorter cure periods applies: • You have 5 days to cure any monetary defaults. • You have 24 hours to cure defaults related to violations of laws, regulations, or standards relating to health, sanitation, or safety; and defaults related to |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 57–67)
What This Means (2025 FDD)
According to Hawaiian Bros Island Grill's 2025 Franchise Disclosure Document, the franchise agreement can be terminated if a franchisee defaults and the default is not cured within the specified cure period. However, if the default is non-curable under the Franchise Agreement, Hawaiian Bros Island Grill can terminate the agreement immediately.
For curable defaults, the standard cure period is 30 days. However, there are exceptions with shorter cure periods. A franchisee has only 5 days to cure any monetary defaults. For defaults related to violations of laws, regulations, or standards concerning health, sanitation, or safety, the cure period is reduced to 24 hours. The same 24-hour cure period applies to defaults related to unauthorized transfers.
This means a prospective Hawaiian Bros Island Grill franchisee needs to understand what constitutes a curable versus a non-curable default, and be aware of the varying cure periods. Failure to address a default within the allotted time can lead to termination of the franchise agreement. The shorter cure periods for monetary defaults and health/safety violations highlight the critical importance of maintaining financial stability and adhering to strict operational standards.