Under what conditions does Hawaiian Bros Island Grill have the right to immediate possession of the collateral?
Hawaiian_Bros_Island_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor has the right to enter the Premises at any time and from time to time (i) to make any repairs, alterations, or removals of the Hawaiian Bros Island Grill trade dress or equipment Franchisor considers reasonably necessary to protect the Hawaiian Bros Island Grill system and marks, (ii) to cure any default under the Franchise Agreement or under the Lease, and (iii) to remove the distinctive elements of the Hawaiian Bros Island Grill trade dress upon the expiration or termination of the Franchise Agreement.
Franchisor will repair, or reimburse Landlord for the reasonable cost to repair, any damage to the walls, floor, or ceiling of the Premises that results from Franchisor's removal of trade dress items and other property from the Premises.
Source: Item 23 — RECEIPTS (FDD pages 77–262)
What This Means (2025 FDD)
The 2025 Franchise Disclosure Document for Hawaiian Bros Island Grill states that the franchisor has specific rights regarding the leased premises of a franchise. According to the lease rider, Hawaiian Bros Island Grill has the right to enter the premises at any time to make repairs, alterations, or removals of the Hawaiian Bros Island Grill trade dress or equipment the Franchisor considers reasonably necessary to protect the Hawaiian Bros Island Grill system and marks. This includes curing any default under the Franchise Agreement or the Lease, and removing the distinctive elements of the Hawaiian Bros Island Grill trade dress upon the expiration or termination of the Franchise Agreement.
This means that Hawaiian Bros Island Grill can take possession of branded items and trade dress elements if the franchisee defaults on the lease or franchise agreement, or when the agreement expires or is terminated. The landlord must furnish Hawaiian Bros Island Grill with copies of all default or termination notices sent to the tenant (franchisee). This ensures that Hawaiian Bros Island Grill is informed of any issues that could lead to the termination of the lease and can act to protect its interests.
Furthermore, Hawaiian Bros Island Grill is responsible for repairing any damage caused by the removal of trade dress items or reimbursing the landlord for the reasonable cost of repairs. This provision protects the landlord's property while allowing Hawaiian Bros Island Grill to maintain control over its branding and trade dress. This is a fairly standard clause in franchise agreements, as franchisors need to ensure brand consistency and protect their intellectual property. The franchisee should understand these conditions to avoid potential disputes and ensure compliance with the franchise agreement and lease terms.