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Why are some Hawaiian Bros Island Grill restaurants excluded from the Gross Sales data in Table 1?

Hawaiian_Bros_Island_Grill Franchise · 2025 FDD

Answer from 2025 FDD Document

Table 1 below provides the actual, historic Gross Sales of 20 traditional Restaurants owned and operated by our affiliates in Kansas, Missouri, Oklahoma, and Texas, and 21 traditional Restaurants owned and operated by our Franchisees in Arkansas, Iowa, and Texas. The figures reported on Table 1 below include all 41 company and franchised traditional Restaurants that were in operation during the 12-month period January 1, 2024 and ending December 29, 2024. Three of the 21 franchise-operated Restaurants were operated by our affiliate until November and December 2024, at which time they were acquired and operated by two franchisees for the remainder of such 12-month period. The figures on Table 1 do not include data from 20 Restaurants, including six Restaurants operated by our affiliates, one of which is a traditional Restaurant that was not in operation during the entire 12-month period, and five of which are special outlets such as ghost kitchens and digital to-go kitchens, and 14 Restaurants operated by our franchisees, 10 of which are traditional Restaurants that were not in operation during the entire 12-month period, and three of which are special outlets such as ghost kitchens and digital to-go kitchens, and one inline strip center location.

Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 67–73)

What This Means (2025 FDD)

According to Hawaiian Bros Island Grill's 2025 Franchise Disclosure Document, Table 1 presents the historic gross sales of 41 restaurants that operated for the entire 12-month period from January 1, 2024, to December 29, 2024. However, the table excludes data from 20 restaurants for specific reasons.

Specifically, the excluded restaurants consist of six company-operated restaurants and 14 franchisee-operated restaurants. Among the company-operated restaurants, one was a traditional restaurant that did not operate for the entire 12-month period, and five were special outlets like ghost kitchens and digital to-go kitchens. Among the franchisee-operated restaurants, 10 were traditional restaurants that did not operate for the entire 12-month period, three were special outlets like ghost kitchens and digital to-go kitchens, and one was an inline strip center location.

In summary, Hawaiian Bros Island Grill excludes restaurants from Table 1 if they were not in operation for the entire 12-month period or if they were special outlet types like ghost kitchens or inline strip center locations. This approach ensures that the financial performance data presented in Table 1 reflects a consistent operational timeframe and focuses on traditional restaurant models, providing prospective franchisees with a more relevant and comparable financial overview.

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.