Under what conditions can Hawaiian Bros Island Grill assign the Franchise Agreement?
Hawaiian_Bros_Island_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
| (1) Provision | (2) Section in Franchise Agreement | (3) Summary |
|---|---|---|
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| j. Assignment of contract by franchisor. | 13(a) | We have the right to assign your Franchise Agreement at any time without your consent, and we will have no further obligations under the contract, except for any liabilities that already accrued. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 57–67)
What This Means (2025 FDD)
According to Hawaiian Bros Island Grill's 2025 Franchise Disclosure Document, Hawaiian Bros Island Grill has the right to assign the Franchise Agreement at any time without the franchisee's consent. Upon assignment, Hawaiian Bros Island Grill will have no further obligations under the contract, except for any liabilities that have already occurred.
This means that Hawaiian Bros Island Grill can transfer the agreement to another party without needing the franchisee's approval. This is a standard clause in many franchise agreements, giving the franchisor flexibility in business operations, such as in the event of a merger, acquisition, or other corporate restructuring.
For a prospective franchisee, this implies that the relationship and terms of the agreement could change if the franchise is sold to a new entity. While Hawaiian Bros Island Grill remains responsible for existing liabilities, the new assignee would dictate the future direction of the franchise relationship. It is important for a franchisee to understand this potential for change and consider it as a risk factor.