What outstanding obligations must a Hawaiian Bros Island Grill Developer satisfy before transferring their interest?
Hawaiian_Bros_Island_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
Without limiting Company's right to consent or withhold consent to a proposed transfer, whether to an individual or any Business Entity, Company's consent to any transfer will be conditioned on the following: ( 1 ) a proposed transferee must meet Company's then-current criteria for new franchisees entering the System, (2) Developer must satisfy all of its outstanding obligations to Company or its Affiliates, (3) the transferee (or Developer, if an Ownership Interest is transferred) must execute Company's then-current form of Development Agreement and other collateral agreements Company may then require, (4) Developer and each Principal must give Company an unconditional, general release, in form and substance satisfactory to Company, of all claims they may have against Company and its Affiliates and their respective owners, directors, officers, and agents, and (5) Developer must have complied with any other conditions that Company reasonably requires from time to time as part of its transfer policies.
Source: Item 23 — RECEIPTS (FDD pages 77–262)
What This Means (2025 FDD)
According to Hawaiian Bros Island Grill's 2025 Franchise Disclosure Document, a Developer seeking to transfer their interest in a Development Agreement must first satisfy all outstanding obligations to Hawaiian Bros Island Grill or its affiliates. This requirement ensures that the Developer is in good standing with the company before transferring rights to another party.
In addition to satisfying outstanding obligations, the proposed transferee must meet Hawaiian Bros Island Grill's then-current criteria for new franchisees entering the system. The transferee (or the Developer, if an Ownership Interest is transferred) must execute Hawaiian Bros Island Grill's then-current form of Development Agreement and other collateral agreements that Hawaiian Bros Island Grill may require at the time of transfer. The Developer and each Principal must also provide an unconditional, general release of all claims against Hawaiian Bros Island Grill and its affiliates, in a form and substance satisfactory to the company.
Furthermore, the Developer must comply with any other conditions that Hawaiian Bros Island Grill reasonably requires as part of its transfer policies. These conditions collectively ensure that any transfer of interest aligns with the company's standards and protects its interests. Prospective franchisees should carefully review the then-current Development Agreement and transfer policies to fully understand all requirements and obligations.