What is the maximum interest rate Hawaiian Bros Island Grill can charge?

According to Hawaiian Bros Island Grill's 2025 Franchise Disclosure Document, if a franchisee does not make payments within 5 business days of the due date, Hawaiian Bros Island Grill has the right to charge interest. The interest rate is the lesser of 1.5% per month or the highest rate allowed by applicable law.

This means that if a franchisee is late on payments, they will incur interest charges, which can add up quickly. The actual interest charged will depend on the outstanding balance and the prevailing legal limits on interest rates in the franchisee's jurisdiction.

Franchisees should be aware of this policy and ensure timely payments to avoid these charges. It is also important to understand the applicable state laws regarding interest rates to know the potential maximum charge. This is a fairly standard practice in franchising, as it incentivizes franchisees to pay on time and compensates the franchisor for the time value of money and the administrative costs of dealing with late payments.