Who is responsible for locating and financing the restaurant premises for a Hawaiian Bros Island Grill franchise?
Hawaiian_Bros_Island_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
- (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.
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 locating and financing the restaurant premises. This means that prospective Hawaiian Bros Island Grill franchisees must independently find a suitable location for their restaurant and secure the necessary funding to either purchase or lease the property.
While Hawaiian Bros Island Grill may offer assistance in the selection of the restaurant premises, the final decision and responsibility rest solely with the franchisee. The franchisor's approval of a location does not guarantee the success of the franchise at that site. This arrangement is typical in the franchise industry, where franchisees bear the primary responsibility for site selection and financing, while franchisors provide guidance and brand support.
Furthermore, the Hawaiian Bros Island Grill franchisee is responsible for evaluating, negotiating, and entering into a lease or purchase agreement for the restaurant premises, with the company having no responsibility for the lease itself. The franchisee must also furnish Hawaiian Bros Island Grill with an executed lease within five days after its execution. This highlights the importance of due diligence and careful negotiation on the part of the franchisee when securing a location for their Hawaiian Bros Island Grill restaurant.