Under what conditions can Hawaiian Bros Island Grill postpone the opening of the Franchised Restaurant?
Hawaiian_Bros_Island_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
- (5) Franchisee will open the Franchised Restaurant for business not later than the Scheduled Opening Date specified beneath the signature block of this Agreement and will operate it continuously throughout the entire Term solely under the Hawaiian Bros Island Grill trade name and System.
If the Franchised Restaurant's completion is interrupted by a natural disaster, fire or
other casualty, labor dispute, materials shortage, or similar event over which Franchisee lacks control (such "force majeure" events do not under any circumstances include Franchisee's financing delays or difficulties), the Scheduled Opening Date will be extended for the time reasonably necessary to remedy the effects of the occurrence. The extension provided in this Section will be available only if Franchisee gives Company prompt written notice of the event's occurrence and an estimate of the time required to remedy its effects.
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 opening date of a franchised restaurant can be extended under specific circumstances. If the completion of the restaurant is interrupted by events outside of the franchisee's control, such as a natural disaster, fire, other casualty, labor dispute, or materials shortage, the scheduled opening date will be extended. These events are categorized as "force majeure" events. However, the document explicitly states that financing delays or difficulties experienced by the franchisee do not qualify as force majeure events and will not result in an extension of the opening date.
To be eligible for an extension, the franchisee must provide Hawaiian Bros Island Grill with prompt written notice of the occurrence of the event and include an estimate of the time needed to remedy the effects of the event. This notification is crucial for the franchisee to be considered for an extension of the scheduled opening date. The extension will be granted for a time period that Hawaiian Bros Island Grill deems reasonably necessary to address the impact of the disruptive event.
This clause protects franchisees from unforeseen and uncontrollable events that could delay their restaurant opening. However, it also places the responsibility on the franchisee to communicate promptly and transparently with Hawaiian Bros Island Grill about any such issues. Franchisees should be aware that financial difficulties are not covered under this clause, highlighting the importance of securing adequate funding before commencing the project.