When purchasing an existing Hawaiian Bros Island Grill franchise, is the transfer fee refundable?
Hawaiian_Bros_Island_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
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If you purchase an existing franchise, you do not pay an initial franchise fee unless the term of the franchise agreement issued to you for the existing franchise is extended, in which case, a prorated non-refundable franchise fee may be charged based on our then-current initial franchise fee. In addition, if you purchase an existing franchise, you pay us a transfer fee (which is not refundable) of $10,000 for each existing Restaurant you purchase. We may require you to pay these transfer fees when you request approva
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, when purchasing an existing franchise, the transfer fee is not refundable. Specifically, the FDD states that a transfer fee of $10,000 is required for each existing Hawaiian Bros Island Grill restaurant purchased.
This means that if a prospective franchisee is looking to buy an existing Hawaiian Bros Island Grill location instead of opening a new one, they will need to pay this $10,000 transfer fee to Hawaiian Bros Island Grill. This fee is in addition to any other costs associated with acquiring the existing franchise, such as the purchase price negotiated with the current owner.
The fact that this $10,000 transfer fee is non-refundable is an important consideration for potential franchisees. Even if the transfer does not ultimately go through due to unforeseen circumstances, Hawaiian Bros Island Grill will not refund the $10,000. This is a fairly standard practice in franchising, as the transfer fee typically covers the franchisor's administrative costs associated with reviewing and approving the transfer.