Is there an automatic renewal of the Hawaiian Bros Island Grill Development Agreement?
Hawaiian_Bros_Island_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
| (1) Provision | (2) Section in Development Agreement | (3) Summary | |
|---|---|---|---|
| a. | Length of the Development Agreement term. | 2 | Term is based on the time required to open the number of franchise locations you agree to develop under the development schedule. The Expiration Date of your Development Agreement will be printed on the signature page to your Development Agreement. |
| b. | Renewal or extension of the term | (i) 5 | (i) You may request an extension of the Development Period End Date if you experience delays beyond your control in opening a location by such date. |
| (ii) 8 | |||
| (i) Extension of | (ii) If you agree to develop more than one restaurant, you have a conditional right to renew the Development Agreement. | ||
| applicable | |||
| Development | |||
| Period End Date | |||
| (ii) Renewal of | |||
| development term | |||
| c. | Requirements for Developer to renew or extend (i) Requirements for Development Period End Date Extension (ii) Requirements for Developer to | (i) 5 | (i) You must give us prompt written notice of the occurrence of a force majeure event and an estimate of the time required to remedy its effects. We will grant an extension if we determine you have made a good faith effort to comply with the requirements to open your franchise locations(s) but have experienced delays beyond your reasonable control. Such extension will be for the period of time we determine is reasonably necessary to remedy the events effects. |
| (ii) 8 | |||
| renew | (ii) You must have a Development Agreement to develop more than one Restaurant and be in good standing under that agreement; open the full number of Restaurants in compliance with the development schedule; be operating your Restaurants in compliance with our standards; and we must be satisfied that you are capable of completing the additional locations that you propose to develop. To renew, you must give us 60 days' notice and submit a new application, certain financial and other business information, and the proposed number of restaurants you seek to open in the Development Area. If we grant the renewal, you must sign our then-current form of Development Agreement that sets forth the Development Area boundaries, the number of Restaurants, and the development schedule, which may be different than your proposal and may have different terms and conditions that are materially |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 57–67)
What This Means (2025 FDD)
According to the 2025 Hawaiian Bros Island Grill Franchise Disclosure Document, the Development Agreement does not have an automatic renewal. However, under certain conditions, an extension or renewal of the Development Agreement is possible.
Specifically, if a developer experiences delays beyond their control in opening a location by the scheduled date, they may request an extension of the Development Period End Date. To obtain this extension, the developer must promptly notify Hawaiian Bros Island Grill in writing about the force majeure event, providing an estimate of the time needed to remedy its effects. Hawaiian Bros Island Grill will grant an extension if they determine the developer has made a good faith effort to comply with the requirements to open their franchise locations but faced delays beyond their reasonable control. The extension period will be determined by Hawaiian Bros Island Grill as reasonably necessary to address the event's effects.
Furthermore, if a developer agrees to develop more than one restaurant, they have a conditional right to renew the Development Agreement. To renew, the developer must be in good standing under the existing agreement, have opened the full number of restaurants according to the development schedule, operate the restaurants in compliance with Hawaiian Bros Island Grill's standards, and demonstrate the capability to complete the additional locations they propose to develop. The developer must provide 60 days' notice, submit a new application with financial and business information, and specify the proposed number of restaurants to be opened in the Development Area. If Hawaiian Bros Island Grill grants the renewal, the developer must sign the then-current form of Development Agreement, which may have different terms and conditions that are materially different from the original agreement.