Under what conditions can the time for the purchase and sale be delayed by Hawaiian Bros Island Grill?
Hawaiian_Bros_Island_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
Notwithstanding the foregoing, the time for the purchase and sale may be delayed by Company if such delay is required to obtain any licenses, permits or other approvals from any governmental authority, whether foreign, federal, state, provincial, municipal, local or other, to develop the Hawaiian Bros Restaurants in accordance with this Agreement, and/or to consummate the sale to Company if Company is diligently pursuing such license, permit or other approval.
- (v) If the Option is not exercised, the Principal or Developer, as applicable, may sell the Interests to the Person that made the Offer, on conditions no more favorable to the third-party offeror than those set forth in the Offer, provided that Company approves the proposed transferee in accordance with this Section 10 and provided further that such sale takes place within 90 days after the expiration of the Option Period.
The 90-day limitation described in the preceding sentence will not apply if at the end of the 90-day period the only issue that prevents completion of the purchase and sale is the need to effect transfers of any applicable licenses and such licenses are being diligently pursued.
In the event of such a delay, the purchase and sale will take place within seven days after those licenses have been transferred.
Source: Item 23 — RECEIPTS (FDD pages 77–262)
What This Means (2025 FDD)
According to the 2025 Hawaiian Bros Island Grill Franchise Disclosure Document, the time for the purchase and sale of a Hawaiian Bros Island Grill franchise may be delayed if such delay is required to obtain any necessary licenses, permits, or other approvals from a governmental authority. This applies whether the authority is foreign, federal, state, provincial, municipal, local, or other.
This delay is contingent upon Hawaiian Bros Island Grill diligently pursuing the required license, permit, or approval. This condition protects Hawaiian Bros Island Grill by ensuring compliance with all applicable regulations before a sale is finalized.
In practical terms, this means that if a franchisee is in the process of selling their Hawaiian Bros Island Grill location, the sale can be put on hold if government approvals are pending. This clause ensures that the new owner can legally operate the franchise, and that Hawaiian Bros Island Grill is not exposed to any liability from an unapproved transfer. The purchase and sale will then take place within seven days after those licenses have been transferred.