What is Hawaiian Bros Island Grill's obligation regarding the approval or disapproval of a proposed site?
Hawaiian_Bros_Island_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
Site Selection. The selection of a site is your responsibility. Unless we approve you or your employee for all work related to selecting and securing your Restaurant's site, you must use a licensed real estate broker that we approve for all work related to selecting and securing your Restaurant's site. We may require you to use our preferred broker in specific markets. Restaurant sites must be located inside the development area described in your Development Agreement. After you provide us written information about a potential location, we will evaluate that information and approve or disapprove the proposed site. Our review process may involve a physical site inspection. We are not obligated to approve or disapprove your site selection(s) within a specified time, but we will not unreasonably delay our review. We also will not unreasonably withhold our approval of a site. You have sole risk for your location's business and financial suitability. (Development Agreement, Section 3(b))
We will consider all factors that we deem relevant in evaluating a proposed Restaurant site, including (1) general location and neighborhood, (2) traffic patterns, (3) parking, (4) accessibility from adjacent streets, (5) the size, density, age, and income levels of the population in the surrounding area, including daytime worker population, (6) the character of existing buildings, (7) site visibility, (8) the traffic drivers of adjacent retailers and restaurants, (9) mobile data, (10) existing building size and lot size, (11) interior seating capacity, (12) patio seating capacity, and (13) signage visibility. If we and you do not agree on a site, you must continue looking for a site that we will approve. You must be aware of the deadlines in your Development Agreement because you have certain opening deadlines. If you fail to find an acceptable site, the Development Agreement may be terminated. We do not sign the Franchise Agreement until you find and secure an acceptable site. If you cannot find an acceptable site, you will lose the franchise fee for that franchise. We generally do not own your site and lease it to you.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 36–49)
What This Means (2025 FDD)
According to Hawaiian Bros Island Grill's 2025 Franchise Disclosure Document, the selection of a site for the Restaurant is ultimately the franchisee's responsibility. However, Hawaiian Bros Island Grill does provide general guidelines and site selection assistance. Unless the franchisee is approved for site selection, they must use a licensed real estate broker approved by Hawaiian Bros Island Grill. The franchisor may also require the franchisee to use their preferred broker in certain markets.
After the franchisee provides written information about a potential location, Hawaiian Bros Island Grill will evaluate the information and either approve or disapprove the proposed site. This review process may include a physical site inspection. While Hawaiian Bros Island Grill is not obligated to approve or disapprove site selections within a specific timeframe, they will not unreasonably delay their review, nor will they unreasonably withhold approval of a site. The franchisee bears the sole risk for the location's business and financial suitability.
Hawaiian Bros Island Grill will consider various factors when evaluating a proposed site, including the general location, traffic patterns, parking, accessibility, population demographics, character of existing buildings, site visibility, traffic drivers of nearby businesses, mobile data, building and lot size, seating capacity, and signage visibility. If the franchisee and Hawaiian Bros Island Grill do not agree on a site, the franchisee must continue searching for an acceptable location. Failure to find an acceptable site can lead to the termination of the Development Agreement and loss of the franchise fee. Hawaiian Bros Island Grill does not sign the Franchise Agreement until an acceptable site is secured.