Under what condition will the IT service agreement with Hawaiian Bros Island Grill terminate early?
Hawaiian_Bros_Island_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
The Parties acknowledge and agree that if Hawaiian Bros, in its sole discretion, develops a new fee-based IT service agreement for the System, as defined in the Franchise Agreement (a "Future IT Service Offering") during the Term of this Agreement, this Agreement will terminate upon ten (10) days written notice to Developer, and upon such termination, Developer will be required to participate in the Future IT Service Offering at the Franchised Restaurant(s) in accordance with the terms thereof, including, but not limited to, executing Franchisor's then-current form of agreement and paying the corresponding fees for the Future IT Service Offering.
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 IT service agreement can terminate early if Hawaiian Bros Island Grill develops a new fee-based IT service agreement for the System, referred to as a "Future IT Service Offering."
In this scenario, Hawaiian Bros Island Grill will provide the franchisee with a ten-day written notice, after which the existing IT service agreement will terminate. Upon termination, the franchisee is required to participate in the Future IT Service Offering. This includes executing Hawaiian Bros Island Grill's current agreement form and paying the corresponding fees for the new IT service.
This clause allows Hawaiian Bros Island Grill to update its IT services and require franchisees to adopt these changes. For a prospective franchisee, this means that the initial IT service agreement has the potential to change, and they may be obligated to switch to a new system and fee structure on short notice. It is important for franchisees to budget for potential IT service changes and understand the terms of any future IT service agreements.