Within what timeframe must a Hawaiian Bros Island Grill franchise be transferred after the death of the franchisee?
Hawaiian_Bros_Island_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
| (1) Provision | (2) Section in Franchise | (3) Summary | |
|---|---|---|---|
| A A V I I JAVIA | Agreement | Summar y | |
| n. | Franchisor's right of first refusal to acquire franchisee's business. | 13(g), 17(d)(1)(ii) | We have the option to match any offer to purchase any direct or indirect ownership interest in you or any interest in or right under your Franchise Agreement, your Restaurant or the assets of your Restaurant (other than the sale of items in the ordinary course). We also have the option to match any offer to purchase your or your affiliates' interest in the real estate premises from which you operate your Restaurant if such offer is received after expiration or termination of your Franchise Agreement. |
| 0. | Franchisor's option to purchase franchisee's business. | 17(d)(1)(i) | We have the option to purchase all or any part of your interest in your Franchise Agreement, in your Restaurant or the assets of your Restaurant, including, signs, equipment, fixtures and useable inventory for 60 days after your Franchise Agreement expires or is terminated. |
| p. | Death or disability of franchisee. | 13(h) | Your interest in the franchise or the ownership interest of any direct or indirect owner must be transferred within 12 months of death, or within 6 months of permanent disability. It is a material violation of your Franchise Agreement if you do not complete an approved transfer within the timeframe provided. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 57–67)
What This Means (2025 FDD)
According to the 2025 Hawaiian Bros Island Grill Franchise Disclosure Document, if a franchisee dies, their interest in the franchise must be transferred within 12 months of their death. Failure to complete an approved transfer within this timeframe constitutes a material violation of the Franchise Agreement.
This requirement ensures that the Hawaiian Bros Island Grill business continues to operate under approved management and maintains brand standards even after the franchisee's death. The stipulation protects the franchisor's interests by preventing prolonged uncertainty or mismanagement of the franchise location.
Prospective franchisees should consider this provision carefully, as it necessitates having a clear succession plan or estate plan in place to facilitate a timely transfer in the event of death. This may involve identifying potential transferees and ensuring they meet the franchisor's qualifications for approval, including completing training and signing the current franchise agreement.