Can Hawaiian Bros Island Grill prohibit a franchisee's use of non-required service providers?
Hawaiian_Bros_Island_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
Company reserves the right to prohibit or restrict Franchisee's use of non-required service providers when Company determines, in its sole discretion, that they demonstrate meaningful risks to the System.
Source: Item 23 — RECEIPTS (FDD pages 77–262)
What This Means (2025 FDD)
According to the 2025 Hawaiian Bros Island Grill Franchise Disclosure Document, Hawaiian Bros Island Grill reserves the right to prohibit or restrict a franchisee's use of non-required service providers. This is contingent on Hawaiian Bros Island Grill determining, in its sole discretion, that these service providers present meaningful risks to the Hawaiian Bros Island Grill system.
This provision grants Hawaiian Bros Island Grill significant control over the vendors and service providers that franchisees can use, even if those providers are not explicitly required. This control is intended to protect the consistency and quality of the Hawaiian Bros Island Grill brand and operations.
For a prospective franchisee, this means they may not have complete autonomy in choosing service providers. If Hawaiian Bros Island Grill believes a particular non-required service provider poses a risk, they can restrict or prohibit its use. Therefore, franchisees need to be aware that their choices may be limited and subject to the franchisor's approval. It would be prudent for a potential franchisee to discuss with Hawaiian Bros Island Grill what constitutes a 'meaningful risk' and under what circumstances a service provider might be restricted.