What is the initial term length of the IT service agreement with Hawaiian Bros Island Grill?
Hawaiian_Bros_Island_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
-
- Term and Termination.
The term of this Agreement shall commence on the Effective Date and shall terminate after a term of one (1) year (the "Term"), unless earlier terminated as provided herein.
The Parties acknowledge and agree that if Hawaiian Bros, in its sole discretion, develops a new fee-based IT service agreement for the System, as defined in the Franchise Agreement (a "Future IT Service Offering") during the Term of this Agreement, this Agreement will terminate upon ten (10) days written notice to Developer, and upon such termination, Developer will be required to participate in the Future IT Service Offering at the Franchised Restaurant(s) in accordance with the terms thereof, including, but not limited to, executing Franchisor's then-current form of agreement and paying the corresponding fees for the Future IT Service Offering.
Upon termination of this Agreement, all fees and other obligations of the Parties shall cease, except those obligations that accrued prior to the effective date of termination of this Agreement and those obligations that by their terms or nature continue after termination of this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 77–262)
What This Means (2025 FDD)
According to the 2025 Franchise Disclosure Document, the initial term of the IT service agreement between Hawaiian Bros Island Grill and the developer is one year, commencing on the effective date of the agreement. The agreement can be terminated earlier as provided within the agreement itself.
However, Hawaiian Bros Island Grill retains the discretion to introduce a new fee-based IT service agreement for the system during the term of the existing agreement. Should this occur, the current agreement will terminate with a 10-day written notice to the developer. Following such termination, the developer would be obligated to participate in the new IT service offering, adhering to its terms, including executing the franchisor's current agreement form and paying the associated fees.
Upon termination of the IT service agreement, all ongoing fees and obligations between the parties will cease, except for any obligations that were due before the termination date and any obligations that, by their nature or terms, are intended to continue after the agreement ends. This ensures that any outstanding payments or responsibilities are settled appropriately, while also allowing for a transition to any new IT service arrangements implemented by Hawaiian Bros Island Grill.