factual

How many additional terms can a Hawaiian Bros Island Grill franchisee renew for?

Hawaiian_Bros_Island_Grill Franchise · 2025 FDD

Answer 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.

Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 57–67)

What This Means (2025 FDD)

According to the 2025 Franchise Disclosure Document, a Hawaiian Bros Island Grill franchisee is eligible to renew their franchise agreement for one additional term. This renewal term extends the franchise relationship for another 15 years, contingent upon meeting specific qualifications outlined in the franchise agreement.

To qualify for renewal, the franchisee must be in good standing with Hawaiian Bros Island Grill, having fulfilled all monetary and other material obligations. They must also provide timely notice of their intent to renew the agreement. A significant aspect of the renewal process involves signing the then-current franchise agreement, which may contain terms and conditions that differ materially from the original agreement. This means that the franchisee needs to be prepared to adapt to potential changes in the franchise system.

In addition to signing a new agreement, the franchisee must comply with the then-current training requirements set by Hawaiian Bros Island Grill. They are also required to execute a release of claims against the franchisor and its affiliates, ensuring that all past issues are resolved. Furthermore, franchisees must comply with any remodeling and redecoration requirements to bring their location up to the current brand standards. Finally, a renewal fee is required, set at 50% of the then-current Initial Franchise Fee, representing a substantial investment for the additional term.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.