What is the maximum royalty fee that Hawaiian Bros Island Grill charges franchisees?
Hawaiian_Bros_Island_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
The franchise agreements are typically for 15 years and require the purchaser to pay an initial franchise fee for each location to be opened. Once the franchise begins operations, the Company typically charges a royalty and advertising fund fee of up to 6% and generally 3%, respectively, of the franchisee's Gross Sales as defined in the Franchise Disclosure Document.
Source: Item 23 — RECEIPTS (FDD pages 77–262)
What This Means (2025 FDD)
According to the 2025 Hawaiian Bros Island Grill Franchise Disclosure Document, franchisees are typically charged a royalty fee of up to 6% of their gross sales. This royalty fee is a recurring payment that franchisees make to Hawaiian Bros Island Grill in exchange for the continued use of the Hawaiian Bros Island Grill brand name, operating systems, and ongoing support.
In addition to the royalty fee, Hawaiian Bros Island Grill also typically charges an advertising fund fee of generally 3% of the franchisee's Gross Sales. These fees are calculated as a percentage of the franchisee's gross sales, providing a consistent revenue stream for the franchisor while also aligning the franchisor's success with the franchisee's sales performance.
Prospective franchisees should carefully consider these ongoing fees when evaluating the financial viability of a Hawaiian Bros Island Grill franchise. Understanding how these fees are calculated and what services and support they cover is crucial for making an informed investment decision.