Under what circumstances is a Hawaiian Bros Island Grill franchisee prohibited from relocating their restaurant?
Hawaiian_Bros_Island_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
mmercial contract rate of interest permitted by applicable law. Any interest collected is nonrefundable. Nothing in this Agreement obligates Franchisee or any guarantor of Franchisee's obligations to pay, or entitles Company to collect, interest in excess of the maximum rate allowed under applicable law.
15. RESTAURANT RELOCATION
Franchisee may not under any circumstances relocate the Franchised Restaurant to new premises without Company's prior written consent. Among other things, Company may condition its consent, if any, of Franchisee's relocation request on: (a) the new premises being located in the Territory (as determined by Company in its sole judgment) and in no case infringing another Hawaiian Bros Restaurant's protected territory; (b) the new premises and its lease being acceptable to Company; (c) Franchisee paying Company a $7,500 relocation fee, which fee is nonrefundable and may be required by Company to be paid at the time Franchisee submits its relocation request and, if not so required, is due no later than five days after Company' request; (d) Franchisee confirming that this Agreement remains in effect and governs its operation of the Franchised Restaurant at the new premises with no change in the Term or, at Company's option, Franchisee signing Company's then-current form of Franchise Agreement to govern its operation of the Franchised Restaurant at the new premises for a new franchise term; (e) Franchisee and each Principal signing a general release, in form and substance satisfactory to Company, of any and all claims against Company and its Affiliates and their respective owners, directors, officers, and agents; (h) Franchisee continuing to operate the Franchised Restaurant at its original location until Company authorizes its closure; and (i) Franchisee taking all action, within the timeframe Company specifies and at Franchisee's own expense, that Company requires to de-brand and de-identify the Franchised Restaurant's former premises so that they no longer are associated in any manner (in Company's opinion) with the System. If Company approves the relocation, the documents that Company and Franchisee sign in connection with the relocation wi
Source: Item 23 — RECEIPTS (FDD pages 77–262)
What This Means (2025 FDD)
According to the 2025 Hawaiian Bros Island Grill FDD, a franchisee cannot relocate their restaurant without prior written consent from the company. Hawaiian Bros Island Grill may impose conditions on relocation, including the new location being within the franchisee's territory and not infringing on another Hawaiian Bros restaurant's protected territory. The company must also find the new premises and its lease acceptable.
Additionally, Hawaiian Bros Island Grill may require the franchisee to pay a $7,500 relocation fee, which is nonrefundable. The franchisee may also need to confirm that the existing franchise agreement remains in effect or sign the company's current franchise agreement for a new term. A general release of claims against Hawaiian Bros Island Grill and its affiliates may also be required from the franchisee and each principal.
The franchisee must continue operating at the original location until Hawaiian Bros Island Grill authorizes its closure. The franchisee is also responsible for de-branding the former premises at their own expense, ensuring it is no longer associated with the Hawaiian Bros Island Grill system. If the proposed relocation is outside the franchisee's territory and approved by Hawaiian Bros Island Grill, it will be treated as the acquisition of a new franchise rather than a relocation.
This policy is fairly standard in franchising, as franchisors want to control brand consistency and avoid cannibalization between franchise locations. The relocation fee is also a common practice to cover the franchisor's costs of evaluating and approving the new site.