What obligation does the Developer undertake in the Development Agreement with Hawaiian Bros Island Grill?
Hawaiian_Bros_Island_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
__ ("Developer"), and the undersigned Controlling Principals. Certain terms are used in this Agreement with the meanings assigned in the Glossary of Terms appearing at the beginning of this Agreement. The Glossary of Terms is incorporated into, and made an integral part of, this Agreement by reference.
1. RECITALS.
Company sells franchises to operate Hawaiian Bros Restaurants. Developer is a prospective franchisee whose application to become a Hawaiian Bros Island Grill franchisee has been approved by Company.
2. GRANT OF DEVELOPMENT RIGHTS; CERTAIN DEVELOPER OBLIGATIONS.
In consideration of the Franchise Fee Deposit Developer pays in accordance with Section 6, Company grants to Developer the right, and Developer undertakes the obligation, to develop and open one or more Hawaiian Bros Restaurants, as specified on Exhibit B, in the Development Area described in Exhibit A. Subject to extension or early termination as provided herein, the term of this Agreement is the period between the Effective Date and the Expiration Date, both of which are indicated on the signature page of this Agreement.
If Developer is a Business Entity, Developer must provide copies of its Charter Documents, any amendments thereto, resolutions of Developer's Board of Directors, managers, general partner or other managing body authorizing Developer to enter into and perform this Agreement, any certificates, buy-sell agreements or other documents restricting the sale or transfer of stock, and any other documents as may be reasonably required by Company to be furnished to Company prior to the execution of this Agreement. Developer further represents, warrants and covenants that it is duly organized and validly existing under the law of the state of its formation and is duly qualified and authorized to do business in each jurisdiction in which its business activities or the nature of the properties it owns requires such qualification.
Developer represents, warrants and agrees that Exhibit C, including all documents and information attached thereto, is complete, current and accurate. Without limiting the terms of Section 10, Developer must furnish a current version of Exhibit C, including all documents and information to be attached thereto, to Company within 10 days after any change and upon Company's request. Each Person Company designates, including each Person who is or becomes a Principal and has access to Trade Secrets or other Confidential Information, must sign an agreement undertaking to be bound by confidentiality, noncompetition and non-solicitation covenants in the form attached as Exhibit F.
Developer agrees to comply with all terms of use concerning any Intranet Company may maintain or may hereafter develop.
Developer will notify Company within five days after the commencement of any action, suit, arbitration, proceeding, or investigation, or the issuance of any order, writ, injunction, award, or decree, by any court, agency, or other governmental instrumentality which names Developer and/or any Controlling Principal as a party or otherwise concerns the development or operation of a Hawaiian Bros Restaurant or Developer's financial condition.
Company will require one or more of Developer's Controlling Principals, as determined by Company, to complete Company's cultural immersion training program. Developer's Controlling Principals that are required to complete such program must satisfactorily complete Company's cultural immersion training program within two months after the Effective Date and before assuming control of any Hawaiian Bros Restaurant. Company will provide such Controlling Principals with Company's cultural immersion training at a location designated by Company, without charging tuition or a training fee, provided Developer must pay all costs and expenses, including lodging, meals and transportation costs and wages and benefits for any employee, that Developer or its Controlling Principals incur in attending Company's cultural immersion training. Company will determine whether such Controlling Principals have satisfactorily completed the cultural immersion training.
Source: Item 23 — RECEIPTS (FDD pages 77–262)
What This Means (2025 FDD)
According to the 2025 FDD, the Development Agreement with Hawaiian Bros Island Grill stipulates that the Developer undertakes the obligation to develop and open one or more Hawaiian Bros Restaurants within a specific Development Area, as detailed in Exhibit B and Exhibit A, respectively. The term of this agreement spans from the Effective Date to the Expiration Date, both of which are specified on the agreement's signature page.
If the Developer is a business entity, they must provide copies of their Charter Documents, amendments, board resolutions authorizing the agreement, and any documents restricting stock sales. The Developer also confirms that Exhibit C, which includes attached documents and information, is complete, current, and accurate. They must update Exhibit C within 10 days of any changes or upon the company's request. All individuals designated by Hawaiian Bros Island Grill, including Principals with access to trade secrets, must sign agreements to comply with confidentiality, noncompetition, and non-solicitation covenants as outlined in Exhibit F.
The Developer must also adhere to the terms of use for any Intranet that Hawaiian Bros Island Grill maintains. Furthermore, the developer acknowledges that they have not made any false statements or omitted any material facts in their application to Hawaiian Bros Island Grill. They also confirm that they do not have any undisclosed competitive business interests and that fulfilling the agreement will not breach any other agreements they or their principals are bound by. Hawaiian Bros Island Grill relies on the accuracy of the statements made by the developer in the application and other written information when entering into the agreement.
For developers with rights to develop multiple Hawaiian Bros Restaurants, they must meet specific requirements to retain these rights. They must comply with Sections 2 and 3 of the agreement, develop and open restaurants according to the schedule in Exhibit B, and operate the cumulative number of restaurants specified in Exhibit B by each Development Period End Date. Failure to meet these obligations or defaulting under the agreement may lead to termination of the development rights, although this does not affect any existing Franchise Agreements.