Does Hawaiian Bros Island Grill require a proposed transferee to meet specific criteria?
Hawaiian_Bros_Island_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
Without limiting Company's right to consent or withhold consent to a proposed transfer, whether to an individual or any Business Entity, Company's consent to any transfer will be conditioned on the following: (1) a proposed transferee that is a new Hawaiian Bros franchisee must meet Company's then-current criteria for new franchisees entering the System, (2) a proposed transferee that is an existing Hawaiian Bros franchisee must meet Company's then-current criteria for existing franchisees desiring to expand within the System beyond their commitments under their existing Development Agreement(s), (3) Franchisee must satisfy all of its outstanding obligations to Company or its Affiliates, (4) the Franchised Restaurant and Restaurant Premises must be in compliance with Company's then-current Standards, (5) the proposed transferee and the transferee's General Manager must satisfactorily complete Company's training program, (6) the transferee (or the Franchisee, if an Ownership Interest is transferred) must execute Company's thencurrent form of Franchise Agreement (which will limit the term of the transferee's franchise to the unexpired portion of the Term), Assignment of Telephone Number(s) and Online Presence, Authorization Agreement for Preauthorized Payments, and/or any other collateral agreements Company may then require, (7) concurrent with the execution of the then-current form of Franchise Agreement, each Controlling Principal of the transferee and their spouse (if any), must execute a Guaranty, (8) Franchisee, its Affiliates, and each Principal must give Company an unconditional, general release, in form and substance satisfactory to Company, of all claims they may have against Company and its Affiliates and their respective owners, directors, officers, and agents, and (9) Franchisee must have complied with any other conditions that Company reasonably requires from time to time as part of its transfer policies.
Source: Item 23 — RECEIPTS (FDD pages 77–262)
What This Means (2025 FDD)
According to Hawaiian Bros Island Grill's 2025 Franchise Disclosure Document, transferring a franchise is subject to certain conditions. Hawaiian Bros Island Grill must give prior written consent for any transfer of interest, whether direct or indirect.
The franchisor will only consent to a transfer if the proposed transferee meets the then-current criteria for new franchisees entering the Hawaiian Bros Island Grill system. If the proposed transferee is an existing franchisee, they must meet the current criteria for franchisees looking to expand within the system beyond their existing Development Agreement commitments. The franchisee must also fulfill all outstanding obligations to Hawaiian Bros Island Grill and ensure the restaurant premises comply with the company's current standards.
Additionally, the proposed transferee and their General Manager must satisfactorily complete Hawaiian Bros Island Grill's training program. The transferee must execute the current form of the Franchise Agreement, which will limit the franchise term to the unexpired portion of the original term, along with other required agreements. Each Controlling Principal of the transferee and their spouse must execute a Guaranty. Finally, the franchisee must provide Hawaiian Bros Island Grill with an unconditional, general release of all claims against the company and comply with any other conditions reasonably required as part of the transfer policies.