Under what circumstances can Hawaiian Bros Island Grill refuse a franchise transfer?
Hawaiian_Bros_Island_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
Without limiting Company's right to consent or withhold consent to a proposed transfer, whether to an individual or any Business Entity, Company's consent to any transfer will be conditioned on the following: (1) a proposed transferee that is a new Hawaiian Bros franchisee must meet Company's then-current criteria for new franchisees entering the System, (2) a proposed transferee that is an existing Hawaiian Bros franchisee must meet Company's then-current criteria for existing franchisees desiring to expand within the System beyond their commitments under their existing Development Agreement(s), (3) Franchisee must satisfy all of its outstanding obligations to Company or its Affiliates, (4) the Franchised Restaurant and Restaurant Premises must be in compliance with Company's then-current Standards, (5) the proposed transferee and the transferee's General Manager must satisfactorily complete Company's training program, (6) the transferee (or the Franchisee, if an Ownership Interest is transferred) must execute Company's thencurrent form of Franchise Agreement (which will limit the term of the transferee's franchise to
Source: Item 23 — RECEIPTS (FDD pages 77–262)
What This Means (2025 FDD)
According to Hawaiian Bros Island Grill's 2025 Franchise Disclosure Document, the company has the right to refuse a franchise transfer under certain conditions. Hawaiian Bros Island Grill may withhold consent for a transfer to a new franchisee if the proposed transferee does not meet the company's current criteria for new franchisees. Similarly, if the transferee is an existing franchisee, they must meet the criteria for franchisees looking to expand within the Hawaiian Bros Island Grill system beyond their existing agreements.
Additionally, Hawaiian Bros Island Grill can refuse a transfer if the franchisee has not fulfilled all outstanding obligations to the company or its affiliates. The franchise restaurant and premises must also be in compliance with the company's current standards. Furthermore, the proposed transferee and their general manager must successfully complete the Hawaiian Bros Island Grill training program.
Finally, the transferee (or the franchisee, if an ownership interest is transferred) must execute the company's current form of Franchise Agreement, which will limit the term of the transferee's franchise to the remaining term of the franchise being transferred. These conditions ensure that any new or existing franchisee taking over a Hawaiian Bros Island Grill location meets the company's standards and is fully trained to maintain the brand's quality and reputation.