What is the relationship between the initial franchise fee for a Hawaiian Bros Island Grill restaurant (Item 5)
Hawaiian_Bros_Island_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
Outlet without Company's express prior permission; or
- (5) To operate a Special Outlet without Company's prior written permission.
- (b) Company reserves all rights that this Agreement does not expressly grant to or confer upon Franchisee.
3. FRANCHISE FEE
As partial consideration for the rights granted under this Agreement, Franchisee shall pay Company an initial franchise fee of $50,000 (the "Initial Franchise Fee"). The Initial Franchise Fee, less the amount of the Franchise Fee Deposit for the Franchised Resta
What This Means (2025 FDD)
According to the 2025 Hawaiian Bros Island Grill Franchise Disclosure Document, the initial franchise fee is $50,000. This fee is a partial consideration for the rights granted to the franchisee under the Franchise Agreement. If the franchisee has previously paid a Franchise Fee Deposit under a Development Agreement, that amount will be deducted from the $50,000 initial franchise fee.
The initial franchise fee is payable to Hawaiian Bros Island Grill simultaneously with the execution of the Franchise Agreement, and must be paid via certified check, wire transfer, or electronic funds transfer. It is important to note that this fee is non-refundable under any circumstances.
Hawaiian Bros Island Grill recognizes the initial franchise fees as contract liabilities when received and recognizes them as revenue on a straight-line basis over the term of each respective franchise agreement, which typically lasts 15 years, commencing when the related restaurant is opened. This accounting practice reflects that the franchise right is considered a single performance obligation, interrelated with the ongoing services provided to franchisees.