Is the Hawaiian Bros Island Grill transfer fee refundable?
Hawaiian_Bros_Island_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
Outlet without Company's express prior permission; or
- (5) To operate a Special Outlet without Company's prior written permission.
- (b) Company reserves all rights that this Agreement does not expressly grant to or confer upon Franchisee.
3. FRANCHISE FEE
As partial consideration for the rights granted under this Agreement, Franchisee shall pay Company an initial franchise fee of $50,000 (the "Initial Franchise Fee"). The Initial Franchise Fee, less the amount of the Franchise Fee Deposit for the Franchised Resta
Source: Item 23 — RECEIPTS (FDD pages 77–262)
What This Means (2025 FDD)
According to the 2025 Franchise Disclosure Document, the initial franchise fee for Hawaiian Bros Island Grill is not refundable under any circumstances. Specifically, the document states that as partial consideration for the rights granted to the franchisee, an initial franchise fee of $50,000 must be paid. This fee, less any Franchise Fee Deposit paid under the Development Agreement, is due upon the execution of the Franchise Agreement.
This non-refundable policy means that once a prospective Hawaiian Bros Island Grill franchisee pays the initial franchise fee, they cannot get it back, regardless of whether they ultimately open a restaurant. This is a standard practice in franchising, as the fee compensates the franchisor for the initial costs of granting the franchise, including training, site selection assistance, and brand development.
Prospective Hawaiian Bros Island Grill franchisees should carefully consider this non-refundable aspect before signing the Franchise Agreement and paying the initial franchise fee. It is crucial to conduct thorough due diligence, including reviewing the FDD, consulting with existing franchisees, and seeking professional advice, to ensure that the franchise opportunity aligns with their financial capabilities and business goals. Understanding this policy is essential for making an informed decision about investing in a Hawaiian Bros Island Grill franchise.