What pre-opening assistance does Hawaiian Bros Island Grill provide to franchisees?
Hawaiian_Bros_Island_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
ment, Section 5(a))
We sign the Franchise Agreement only after you have signed your Restaurant's lease. Unless you are approved to do otherwise, you must use a licensed and experienced real estate attorney to negotiate the lease for your Restaurant. The lease must have our required form of Lease Rider attached to it. (Development Agreement, Section 3(b)) The Franchise Agreement requires you to open your Restaurant on or before the Scheduled Opening Date we insert on the Franchise Agreement's signature page. (Franchise Agreement, Section 7(d)(5)) We calculate the Scheduled Opening Date by estimating the time it will take you to finish out your Restaurant.
Typical Time Before Opening. The length of time between execution of the Development Agreement and the opening of your first Restaurant typically is 9 to 12 months. Factors affecting this length of time include the selection, approval, and leasing of the Restaurant's site, time required to obtain necessary permits, construction or remodeling of the facility, local ordinance and/or building code compliance, installation of equipment and signs, completion of our training program, delivery and stocking of inventory, and force majeure events that may arise outside of your control.
Advertising and Development Fund. We have created and established an Advertising and Development Fund (the "Ad Fund") to advertise the System and the products offered by Hawaiian Bros Island Grill locations on a regional or national basis. We may unilaterally require you to contribute to the Ad Fund at a rate that, when combined with any required minimum local advertising spend, does not exceed 4% of Gross Sales. Currently, the combined Ad Fund contribution rate and minimum local advertising spend is 4% of Gross Sales. You and other franchisees operating a Restaurant in the System are currently required to contribute 3% of Gross Sales to the Ad Fund. Our affiliates that operate Restaurants in the System are currently not required to contribute to the Ad Fund, but may contribute in the future. (Franchise Agreement, Section 8(a)(1))
We direct all advertising and promotions that the Ad Fund finances, with sole control over the creative concepts, graphics, materials, communications media, and endorsements used and their geographic, market, and media placement and allocation. The Ad Fund may pay for creating, preparing, and producing video, audio, and written materials, graphics, and electronic media; developing, implementing, operating, and maintaining a Hawaiian Bros Island Grill Website, App, Intranet and/or related strategies; administering national, regional, multi-regional, and local advertising and promotions, including purchasing media advertising, conducting direct mail and other direct marketing campaigns, doing on-line Internet advertising and marketing; conducting research and other advertising and promotions tactics; using advertising, promotions, customer relation management, graphic design, marketing, and research agencies and other advisors to provide assistance; supporting public relations, market research, customer satisfaction surveys, and other advertising, promotions, and research activities; paying dues for membership and participation in franchising and industry associations; paying third-party vendors to customize advertising and promotions materials for in-restaurant and local use by franchisees; creating or placing advertisement for solicitation of franchisees; and engaging in other brand enhancement activities. (Franchise Agreement, Section 8(a)(2))
We will account for the Ad Fund separately from our other monies (although we need not keep Ad Fund contributions in a separate bank account) and not use the Ad Fund for our general operating expenses. However, we may use the Ad Fund to pay the salaries and benefits of personnel who manage and administer the Ad Fund and work on Ad Fund business; the Ad Fund's other administrative costs; travel expenses of personnel while they are on Ad Fund business; meeting costs, including franchisee conferences; overhead relating to Ad Fund business;
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 36–49)
What This Means (2025 FDD)
According to the 2025 Franchise Disclosure Document, Hawaiian Bros Island Grill provides several forms of pre-opening assistance to its franchisees. Before signing the Franchise Agreement, franchisees must sign their Restaurant's lease, using a licensed and experienced real estate attorney (unless otherwise approved) and attaching the required Lease Rider. Hawaiian Bros Island Grill also determines the Scheduled Opening Date, estimating the time needed to complete the Restaurant. The typical time between signing the Development Agreement and opening the first Restaurant is 9 to 12 months, influenced by factors like site selection, permits, construction, and training.
Hawaiian Bros Island Grill requires the Designated Principal, and any other designated Controlling Principals, to complete an orientation program within two months of signing a Development Agreement, and before assuming control of any Restaurant. This orientation includes approximately 16 hours of onboarding, with two days spent at a designated Restaurant location or facility in the Kansas City area, where franchisees meet Hawaiian Bros Island Grill leadership and learn about requirements, systems, and processes. Restaurant training is also provided to the Designated Principal, other required Controlling Principals, and all salaried managers, who must complete the designated training program to Hawaiian Bros Island Grill's satisfaction and become certified by their training department.
Additionally, Hawaiian Bros Island Grill offers ongoing support after the Restaurant opens. For the first two new Restaurant openings, a pre-opening team assists for one week after each opening, with a possible extra week if deemed necessary. However, this pre-opening assistance team is not required for the third or subsequent Restaurants. Hawaiian Bros Island Grill also makes available training programs, seminars, and related activities, some of which may be mandatory and require a fee. They may also provide additional on-site training at the Restaurant upon request, with an hourly training fee of $250, and $350 per hour during weeks with a national holiday, plus reimbursement of costs and expenses.