What is the transfer fee for a Hawaiian Bros Island Grill franchise agreement?
Hawaiian_Bros_Island_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
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| (1) | (2) | (3) | (4) |
|---|---|---|---|
| Type of fee (1) | Amount | Due Date | Remarks |
| Transfer Fee – Development Agreement (6) | $10,000 | Prior to transfer | If Developer is an individual or partnership assigning the franchise to a business entity in which the Developer will own all of the ownership interests, the transfer fee is limited to reimbursing us for any legal expenses we incur to prepare or review documentation related to |
Source: Item 6 — OTHER FEES (FDD pages 16–23)
What This Means (2025 FDD)
According to the 2025 Hawaiian Bros Island Grill Franchise Disclosure Document, the transfer fee for a Development Agreement is $10,000. This fee is due prior to the transfer. However, if the Developer is an individual or partnership assigning the franchise to a business entity in which the Developer will own all of the ownership interests, the transfer fee is limited to reimbursing Hawaiian Bros Island Grill for any legal expenses they incur to prepare or review documentation related to the transfer.
Transfer fees are common in franchising and usually cover the franchisor's administrative costs and legal expenses associated with reviewing and approving the transfer of ownership. The standard $10,000 fee would apply when transferring the Development Agreement to a third party.
The reduced fee for transfers to a business entity wholly owned by the original developer is a notable benefit. This acknowledges that the control and management remain within the same hands, reducing the risk to Hawaiian Bros Island Grill and thus justifying a lower fee. A prospective franchisee should confirm whether this applies to their specific situation and understand what documentation is required to qualify for the reduced fee.