When must I pay the remaining balance of the franchise fee for a Hawaiian Bros Island Grill Restaurant?
Hawaiian_Bros_Island_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
re Restaurants. You will sign a Franchise Agreement after you secure a suitable Restaurant site and have signed a lease for such site. You pay a $50,000 franchise fee deposit for the first Restaurant to be developed under the Development Agreement when you sign the Development Agreement. If you are granted development rights for additional Restaurants under the same Development Agreement, you must pay a franchise fee deposit equal to $25,000 for each additional Restaurant that you commit to develop when you sign the Development Agreement. The franchise fee deposit is fully earned in consideration of the development rights granted in the Development Agreement and is not refundable. The franchise fee deposit will be credited against the franchise fee due under the Franchise Agreement for the Restaurant to which it applies if you timely open the Restaurant. If you fail to timely open a Restaurant, you will forfeit the franchise fee deposit allocated to such Restaurant and it will become our property. You must pay the remaining balance of the franchise fee for a Restaurant upon signing a Franchise Agreement for
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, the timing of the remaining franchise fee payment is linked to the signing of the Franchise Agreement. Specifically, the document states that the remaining balance of the franchise fee for a Restaurant is due upon signing a Franchise Agreement for that Restaurant. This indicates that the franchisee must have secured a suitable Restaurant site and signed a lease before this payment is triggered.
For prospective Hawaiian Bros Island Grill franchisees, this means that while a portion of the franchise fee ($50,000 deposit for the first restaurant) is paid upon signing the Development Agreement, the remaining balance is not due until a specific location is secured and the Franchise Agreement is executed. This structure allows franchisees to secure development rights early while deferring the full franchise fee payment until they are closer to opening their restaurant.
It is important for franchisees to factor this payment schedule into their financial planning. They should ensure they have sufficient capital available at the time of signing the Franchise Agreement to cover the remaining balance of the franchise fee. Additionally, franchisees should be aware that the initial franchise fee deposit is non-refundable and will be forfeited if they fail to open a Restaurant in a timely manner.