Is the selection of a site for a Hawaiian Bros Island Grill restaurant the responsibility of the franchisee?
Hawaiian_Bros_Island_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
Site Selection. The selection of a site is your responsibility. Unless we approve you or your employee for all work related to selecting and securing your Restaurant's site, you must use a licensed real estate broker that we approve for all work related to selecting and securing your Restaurant's site. We may require you to use our preferred broker in specific markets. Restaurant sites must be located inside the development area described in your Development Agreement. After you provide us written information about a potential location, we will evaluate that information and approve or disapprove the proposed site. Our review process may involve a physical site inspection. We are not obligated to approve or disapprove your site selection(s) within a specified time, but we will not unreasonably delay our review. We also will not unreasonably withhold our approval of a site. You have sole risk for your location's business and financial suitability. (Development Agreement, Section 3(b))
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 36–49)
What This Means (2025 FDD)
According to Hawaiian Bros Island Grill's 2025 Franchise Disclosure Document, the franchisee is responsible for selecting the site for their restaurant. However, franchisees are not entirely without guidance, as Hawaiian Bros Island Grill will provide general guidelines to consider when identifying a potential site and will offer site selection assistance as deemed advisable. The franchisor retains the right to designate the territory for the restaurant.
Unless the franchisee or their employee is approved for site selection, they must use a licensed real estate broker approved by Hawaiian Bros Island Grill for all work related to selecting and securing the restaurant site. Hawaiian Bros Island Grill may also require the franchisee to use their preferred broker in specific markets. The selected site must be located inside the development area described in the Development Agreement.
After the franchisee provides written information about a potential location, Hawaiian Bros Island Grill will evaluate the information and either approve or disapprove the proposed site. This review process may include a physical site inspection. While Hawaiian Bros Island Grill is not obligated to approve or disapprove site selections within a specified time, they will not unreasonably delay their review or withhold approval of a site. Ultimately, the franchisee bears the sole risk for the business and financial suitability of the chosen location.