How much is the transfer fee for purchasing an existing Hawaiian Bros Island Grill Restaurant?
Hawaiian_Bros_Island_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
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If you purchase an existing franchise, you do not pay an initial franchise fee unless the term of the franchise agreement issued to you for the existing franchise is extended, in which case, a prorated non-refundable franchise fee may be charged based on our then-current initial franchise fee. In addition, if you purchase an existing franchise, you pay us a transfer fee (which is not refundable) of $10,000 for each existing Restaurant you purchase. We may require you to pay these transfer fees when you request approva
Source: Item 5 — INITIAL FEES (FDD pages 12–16)
What This Means (2025 FDD)
According to Hawaiian Bros Island Grill's 2025 Franchise Disclosure Document, a franchisee purchasing an existing Hawaiian Bros Island Grill restaurant must pay a transfer fee. This fee is $10,000 for each existing restaurant purchased and is non-refundable. Hawaiian Bros Island Grill may require the franchisee to pay the transfer fee when they request approval of the transfer.
This transfer fee is a standard practice in franchising. It covers Hawaiian Bros Island Grill's administrative costs associated with the transfer of ownership, such as reviewing the new franchisee's qualifications, updating records, and providing support during the transition. The non-refundable nature of the fee means that even if the transfer is not ultimately approved, the franchisee will not receive the $10,000 back.
Prospective franchisees should factor this $10,000 transfer fee into their financial planning if they are considering purchasing an existing Hawaiian Bros Island Grill location rather than developing a new one. It is also important to clarify with Hawaiian Bros Island Grill when this fee is due and what steps are involved in the transfer approval process.