How is the initial franchise fee deposit specified for Hawaiian Bros Island Grill?
Hawaiian_Bros_Island_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
5 INITIAL FEES
The Restaurant franchise program involves two types of agreements: a Development Agreement and a Franchise Agreement. The initial franchise fee due under a Franchise Agreement is $50,000. The initial franchise fee deposit is specified in the Development Agreement based on the number of Restaurants to be developed. There are no separate development fees.
The Development Agreement gives you the right and obligation to develop one or more Restaurants. You will sign a Franchise Agreement after you secure a suitable Restaurant site and have signed a lease for such site. You pay a $50,000 franchise fee deposit for the first Restaurant to be developed under the Development Agreement when you sign the Development Agreement. If you are granted development rights for additional Restaurants under the same Development Agreement, you must pay a franchise fee deposit equal to $25,000 for each additional Restaurant that you commit to develop when you sign the Development Agreement. The franchise fee deposit is fully earned in consideration of the development rights granted in the Development Agreement and is not refundable. The franchise fee deposit will be credited against the franchise fee due under the Franchise Agreement for the Restaurant to which it applies if you timely open the Restaurant. If you fail to timely open a Restaurant, you will forfeit the franchise fee deposit allocated to such Restaurant and it will become our property. You must pay the remaining balance of the franchise fee for a Restaurant upon signing a Franchise Agreement for that Restaurant.
Source: Item 5 — INITIAL FEES (FDD pages 12–16)
What This Means (2025 FDD)
According to Hawaiian Bros Island Grill's 2025 Franchise Disclosure Document, the initial franchise fee deposit is outlined within the Development Agreement. The standard initial franchise fee for a single Restaurant franchise is $50,000. However, if a franchisee enters into a Development Agreement for multiple locations, the deposit structure changes.
For the first Restaurant under a Development Agreement, a $50,000 franchise fee deposit is required upon signing the agreement. For each additional Restaurant the franchisee commits to developing under the same agreement, a $25,000 deposit is due upon signing. These deposits are considered fully earned in exchange for the development rights and are non-refundable.
These franchise fee deposits will be credited towards the full franchise fee due when the Franchise Agreement is signed for each respective Restaurant, provided the location opens on time. Failure to open a Restaurant within the agreed timeframe results in forfeiture of the deposit for that location, which then becomes the property of Hawaiian Bros Island Grill. The remaining balance of the franchise fee must be paid when the Franchise Agreement is executed for each Restaurant.