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What does 'you' refer to in the Hawaiian Bros Island Grill franchise disclosure document?

Q: What does 'you' refer to in the Hawaiian Bros Island Grill franchise disclosure document?

Hawaiian Bros Franchising, LLC and Affiliates . Hawaiian Bros Franchising, LLC ("we," "us," and "our") offers the franchise described in this disclosure document. "You" means the individual or business entity (corporation, limited liability company, etc.) that buys a franchise. Except for sole proprietorships, "you" does not include a business entity's owners. Source: Item 1 — THE FRANCHISOR, AND ANY PARENT, PREDECESSORS AND AFFILIATES (FDD pages 8–10)

Hawaiian_Bros_Island_Grill Franchise · 2025 FDD

Answer from 2025 FDD Document

Hawaiian Bros Franchising, LLC and Affiliates. Hawaiian Bros Franchising, LLC ("we," "us," and "our") offers the franchise described in this disclosure document. "You" means the individual or business entity (corporation, limited liability company, etc.) that buys a franchise. Except for sole proprietorships, "you" does not include a business entity's owners.

Source: Item 1 — THE FRANCHISOR, AND ANY PARENT, PREDECESSORS AND AFFILIATES (FDD pages 8–10)

What This Means (2025 FDD)

According to the 2025 Hawaiian Bros Island Grill Franchise Disclosure Document, the term 'you' refers to the individual or business entity that purchases the franchise. This includes corporations and limited liability companies. However, if the franchisee is a business entity, 'you' does not include the owners of that entity, unless the franchisee is a sole proprietorship. This distinction is important because the obligations and rights outlined in the franchise agreement apply directly to the purchasing entity, not necessarily to the individuals behind it, unless it is a sole proprietorship.

This definition clarifies who is legally bound by the terms of the franchise agreement. For example, if a limited liability company (LLC) buys a Hawaiian Bros Island Grill franchise, the LLC is the 'you' in the contract, and the LLC's assets are at stake, not the personal assets of the LLC's members. This is a common practice in franchising, as it provides a clear legal structure for the franchisor and franchisee relationship.

Prospective franchisees should understand this definition thoroughly, especially if they plan to operate the franchise through a business entity. It is crucial to consult with legal and financial advisors to determine the most appropriate business structure for their franchise venture and to fully understand the implications of the franchise agreement for both the business entity and its owners.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.

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