Does Hawaiian Bros Island Grill have the right of first refusal to acquire a franchisee's business?
Hawaiian_Bros_Island_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
| (1) Provision | (2) Section in Franchise | (3) Summary | |
|---|---|---|---|
| A A V I I JAVIA | Agreement | Summar y | |
| n. | Franchisor's right of first refusal to acquire franchisee's business. | 13(g), 17(d)(1)(ii) | We have the option to match any offer to purchase any direct or indirect ownership interest in you or any interest in or right under your Franchise Agreement, your Restaurant or the assets of your Restaurant (other than the sale of items in the ordinary course). We also have the option to match any offer to purchase your or your affiliates' interest in the real estate premises from which you operate your Restaurant if such offer is received after expiration or termination of your Franchise Agreement. |
| 0. | Franchisor's option to purchase franchisee's business. | 17(d)(1)(i) | We have the option to purchase all or any part of your interest in your Franchise Agreement, in your Restaurant or the assets of your Restaurant, including, signs, equipment, fixtures and useable inventory for 60 days after your Franchise Agreement expires or is terminated. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 57–67)
What This Means (2025 FDD)
According to Hawaiian Bros Island Grill's 2025 Franchise Disclosure Document, Hawaiian Bros Island Grill does have the right of first refusal to acquire a franchisee's business. Specifically, Hawaiian Bros Island Grill has the option to match any offer to purchase any direct or indirect ownership interest in the franchisee, the Franchise Agreement, the Restaurant, or the assets of the Restaurant. This excludes the sale of items in the ordinary course of business.
This right of first refusal also extends to the real estate premises from which the franchisee operates their Hawaiian Bros Island Grill Restaurant. If an offer to purchase the real estate is received after the expiration or termination of the Franchise Agreement, Hawaiian Bros Island Grill has the option to match that offer as well.
In addition to the right of first refusal, Hawaiian Bros Island Grill also has a separate option to purchase the franchisee's business outright. For 60 days after the Franchise Agreement expires or is terminated, Hawaiian Bros Island Grill can purchase all or any part of the franchisee's interest in the Franchise Agreement, the Restaurant, or the Restaurant's assets, including signs, equipment, fixtures, and usable inventory.