factual

What does Hawaiian Bros Island Grill require regarding the design and construction of the restaurant premises?

Hawaiian_Bros_Island_Grill Franchise · 2025 FDD

Answer from 2025 FDD Document

and any other person identified on Exhibit C, must sign an agreement undertaking to be bound by confidentiality, non-competition, and nonsolicitation covenants in the form attached as Exhibit E ("Confidentiality and Non-Competition Agreement").

  • (b) Restaurant Premises.Franchisee is responsible for locating, financing, developing and purchasing or leasing the Restaurant Premises. Franchisee acknowledges that selection and procurement of the Restaurant Premises is its responsibility and Company's approval of the Restaurant Premises and rendering of assistance in the selection of the Restaurant Premises does not constitute any representation, guaranty or warranty by Company that the Franchised Restaurant operated at that Restaurant Premises will be successful. Franchisee's Restaurant Premises must meet the following conditions:
    • (1) Company has no responsibility for any lease; it is Franchisee's sole responsibility to evaluate, negotiate and enter into a lease or a purchase agreement for the Restaurant Premises in accordance with the terms of the Development Agreement. Franchisee must furnish Company with an executed lease within five days after its execution.
    • (2) Franchisee must maintain and periodically refresh the building, equipment, fixtures, furnishings, signage and Trade Dress (including the interior and exterior appearance) used in the operation of the Franchised Restaurant in accordance with Company's requirements established periodically and any Inspections or other periodic evaluations of the Restaurant Premises by Company's representatives. From time to time as Company requires, Franchisee must modernize and/or replace aspects of the Restaurant Premises, Trade Dress and equipment as may be necessary for the Franchised Restaurant and Restaurant Premises to conform to the Standards

for similarly situated new Hawaiian Bros Island Grill franchisees, which modernization and/or replacement may include a comprehensive remodel of the Restaurant Premises.

  • (3) Each transfer subject to Section 13 and each renewal under Section 11 are expressly conditioned upon Franchisee's compliance with Company's then-current modernization or replacement requirements.
  • (c) Restaurant Construction.The Franchised Restaurant and Restaurant Premises must be designed, laid out, constructed or renovated, furnished, and equipped to meet the Standards, and Franchisee must satisfy any conditions to Company's approval of the development of the Restaurant Premises. Any deviations from the Standards must have Company's prior written approval. Any plans that Company provides to Franchisee, and Company's approval of any plans Franchisee submits to Company, relate solely to compliance with the Standards and should not be construed as a representation or warranty that the plans comply with applicable laws and regulations. Franchisee is solely responsible for ensuring that construction plans comply with applicable laws and regulations. At Company's request, Franchisee must promptly correct any unapproved deviations from the Standards in the development of the Franchised Restaurant or Restaurant Premises.
  • (d) Construction and Operations. In connection with the construction and operation of the Franchised Restaurant, Franchisee agrees to fulfill the following requirements and perform the obligations and observe the restrictions stated in this Section 7(d):
    • (1) After the Franchised Restaurant opens, Franchisee will not alter its furniture, fixtures, equipment, signs or Trade Dress without Company's express prior permission.
    • (2) Franchisee will affix to an exterior window or display prominently on an interior wall of the Franchised Restaurant a decal or placard containing the following statement: "This restaurant is owned, operated, and managed by _______________________ under a license from Hawaiian Bros Franchising, LLC," and never make a statement or representation to any Person that is contrary to or inconsistent with Section 21 of this Agreement.
    • (3) Franchisee will send its Designated Principal and any other Controlling Principal that we require, the General Manager and Franchisee's Executive Management to the training program described in Section 6(a)(5). The General Manager and at least one other member of Franchisee's Executive Management must complete Company's training program (including all training hours) with a passing grade before the Franchised Restaurant may open for business.
    • (4) As soon as Franchisee obtains a telephone number, Internet domain name registration or Social Media account for the Franchised Restaurant, Franchisee will sign and deliver to Company an Assignment of Telephone Number(s) and Online Presence for its telephone number(s), Internet domain name registration(s) and Social Media accounts in the form attached to this Agreement as Exhibit B.

Source: Item 23 — RECEIPTS (FDD pages 77–262)

What This Means (2025 FDD)

According to the 2025 Hawaiian Bros Island Grill FDD, the franchisee is responsible for all aspects of the restaurant premises. This includes locating, financing, developing, and either purchasing or leasing the restaurant location. While Hawaiian Bros Island Grill may offer assistance in selecting the location, the final decision and responsibility for the site's suitability rests solely with the franchisee. Hawaiian Bros Island Grill's approval of a site does not guarantee the success of the franchised restaurant at that location. The franchisee is also responsible for negotiating the lease terms. Hawaiian Bros Island Grill can refuse authorization to sign a lease if it omits a Lease Rider, contains terms the company does not approve, or fails to contain terms that Hawaiian Bros Island Grill requires for approval. Unless Hawaiian Bros Island Grill approves otherwise, the franchisee must use a licensed and experienced real estate attorney to negotiate the lease.

After site acceptance, the franchisee must promptly engage licensed service providers such as site surveyors, permit expeditors, and architectural and engineering consultants to begin construction documents. Hawaiian Bros Island Grill reserves the right to require the franchisee to use company-approved consultants. To maintain design consistency, Hawaiian Bros Island Grill may assist the consultant in preparing the restaurant's preliminary equipment layout. The franchisee must submit a complete set of construction documents, including mechanical, electrical, and plumbing specifications, for Hawaiian Bros Island Grill's approval.

The franchisee is also responsible for maintaining and refreshing the restaurant building, equipment, fixtures, furnishings, signage, and trade dress, including both the interior and exterior appearance, according to Hawaiian Bros Island Grill's standards. Hawaiian Bros Island Grill can periodically require franchisees to modernize or replace aspects of the restaurant premises, trade dress, and equipment to conform to the standards for new franchisees, potentially including a comprehensive remodel. Compliance with these modernization or replacement requirements is a condition for any transfer or renewal of the franchise agreement.

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.