Who is liable to Don for payments owed by a Hawaiian Bros Island Grill franchisee?
Hawaiian_Bros_Island_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Liability. Don and Franchisee agree that neither Hawaiian Bros nor any of its affiliates will be liable to Don for payments or other obligations owed to Don by Franchisee.
Franchisee will be solely liable to the extent of any obligations of Franchisee arising under or in connection with this Participation Agreement or otherwise with respect to Franchisee's participation in the Master Agreement.
Source: Item 23 — RECEIPTS (FDD pages 77–262)
What This Means (2025 FDD)
According to the 2025 Hawaiian Bros Island Grill Franchise Disclosure Document, the franchisee is solely liable to Edward Don & Company (Don) for payments or other obligations. Hawaiian Bros Island Grill and its affiliates bear no liability to Don for the financial obligations of its franchisees.
This arrangement means that each Hawaiian Bros Island Grill franchisee is independently responsible for managing their credit and payments with Don, who is an approved distributor of non-food supplies. Franchisees must complete a credit application with Don, who will then determine the credit limit and payment terms based on the franchisee's creditworthiness.
This protects Hawaiian Bros Island Grill from the financial risks associated with individual franchisee operations. It also places the onus on the franchisee to maintain a good credit standing with Don to ensure a smooth supply of necessary goods. Franchisees should carefully consider their financial capacity and credit management practices to meet these obligations.
Prospective franchisees should be aware of this direct financial responsibility and factor it into their business planning. They should also understand the terms and conditions of the Participation Agreement with Don, as it outlines the franchisee's obligations and liabilities.