When may Hawaiian Bros Island Grill require the transfer fee to be paid?

According to Hawaiian Bros Island Grill's 2025 Franchise Disclosure Document, a franchisee must pay a transfer fee of $10,000 to Hawaiian Bros Island Grill before any transfer of the franchise can occur. This fee is subject to Section 13(f) of the agreement, which may contain additional conditions or exceptions related to the transfer fee.

This means that if a franchisee decides to sell their Hawaiian Bros Island Grill franchise to someone else, they will need to budget for this $10,000 fee. It's important to note that this fee is in addition to any other costs associated with the transfer, such as legal fees or broker commissions. The prospective franchisee should review Section 13(f) of the Franchise Agreement to fully understand any additional conditions that may apply to the transfer fee.

Transfer fees are a common practice in franchising, intended to compensate the franchisor for their time and expenses in approving the transfer and ensuring that the new franchisee meets their standards. The fee helps to cover the costs of training the new franchisee, updating the franchise agreement, and ensuring a smooth transition. Franchisees should consider the transfer fee as a cost of doing business and factor it into their long-term financial planning.