Are there separate development fees for a Hawaiian Bros Island Grill franchise?
Hawaiian_Bros_Island_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
5 INITIAL FEES
The Restaurant franchise program involves two types of agreements: a Development Agreement and a Franchise Agreement. The initial franchise fee due under a Franchise Agreement is $50,000. The initial franchise fee deposit is specified in the Development Agreement based on the number of Restaurants to be developed. There are no separate development fees.
The Development Agreement gives you the right and obligation to develop one or more Restaurants. You will sign a Franchise Agreement after you secure a suitable Restaurant site and have signed a lease for such site. You pay a $50,000 franchise fee deposit for the first Restaurant to be developed under the Development Agreement when you sign the Development Agreement. If you are granted development rights for additional Restaurants under the same Development Agreement, you must pay a franchise fee deposit equal to $25,000 for each additional Restaurant that you commit to develop when you sign the Development Agreement. The franchise fee deposit is fully earned in consideration of the development rights granted in the Development Agreement and is not refundable. The franchise fee deposit will be credited against the franchise fee due under the Franchise Agreement for the Restaurant to which it applies if you timely open the Restaurant. If you fail to timely open a Restaurant, you will forfeit the franchise fee deposit allocated to such Restaurant and it will become our property. You must pay the remaining balance of the franchise fee for a Restaurant upon signing a Franchise Agreement for that Restaurant.
If you purchase an existing franchise, you do not pay an initial franchise fee unless the term of the franchise agreement issued to you for the existing franchise is extended, in which case, a prorated non-refundable franchise fee may be charged based on our then-current initial franchise fee. In addition, if you purchase an existing franchise, you pay us a transfer fee (which is not refundable) of $10,000 for each existing Restaurant you purchase. We may require you to pay these transfer fees when you request approval of a transfer.
We may accompany you on a market tour and/or visit a site that you propose as a potential site for a Restaurant.
Source: Item 5 — INITIAL FEES (FDD pages 12–16)
What This Means (2025 FDD)
According to Hawaiian Bros Island Grill's 2025 Franchise Disclosure Document, there are no separate development fees. The Restaurant franchise program includes a Development Agreement and a Franchise Agreement. The initial franchise fee for a Franchise Agreement is $50,000. When signing the Development Agreement, a franchisee pays a $50,000 franchise fee deposit for the first restaurant to be developed. If the agreement includes rights to develop additional restaurants, the franchisee must pay a $25,000 franchise fee deposit for each additional restaurant. This deposit is fully earned upon granting the development rights and is non-refundable.
The franchise fee deposit will be credited towards the franchise fee due under the Franchise Agreement for the restaurant, provided the restaurant opens on time. Failure to open the restaurant on time results in forfeiture of the deposit. The remaining balance of the franchise fee must be paid upon signing the Franchise Agreement for that restaurant.
For franchisees purchasing an existing franchise, an initial franchise fee is not required unless the term of the franchise agreement is extended. In that case, a prorated, non-refundable franchise fee may be charged. Additionally, a transfer fee of $10,000 is required for each existing restaurant purchased, payable upon requesting approval of the transfer.