Hawaiian Bros
Hawaiian Bros Franchising LLC operates Island Grill restaurants serving traditional Hawaiian plate lunches and cuisine in a themed atmosphere. Known for authentic Hawaiian flavors, this franchise falls under the quick-service restaurant sector.
Hawaiian Bros franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to begin operation of a Hawaiian Bros Island Grill restaurant ranges from $1,270,660 to $4,367,147. This includes an initial franchise fee deposit ranging from $110,000 to $120,000 that must be paid to the franchisor or affiliate upon signing the Development Agreement, along with additional costs such as pre-opening expenses and operating expenses through the first three months of operation [p.28, p.27].
What is the initial franchise fee?
The initial franchise fee is $50,000 [p.12, p.104]. This fee is not refundable under any circumstances [p.104] and applies whether purchasing a new or existing franchise, with some exceptions for prorated fees in specific cases [p.13, p.15].
What are the ongoing royalty and advertising fees?
The ongoing royalties are typically 5% - 6% of Gross Sales [p.90], while the advertising fund contributions are generally 3% of Gross Sales [p.90]. These fees are recognized as revenue when the related restaurant sales occur based on the application of the sales-based royalty exception within Topic 606.
How long is the initial franchise agreement, and can I renew it?
The initial franchise agreement is typically for 15 years [p.89]. You may be able to renew your franchise for one additional term of 15 years, subject to certain conditions such as not being in default, compliance with operating standards, and payment of a renewal fee equal to 50% of the current initial franchise fee [p.122(b)].
Can I sell or transfer my franchise, and what does that require?
Yes, you can sell or transfer your franchise, but it requires the new owner to complete the initial training program. Additionally, a $10,000 transfer fee is required before any transfer can occur [p.47, p.126]. This isn't specified in the excerpts.
On what grounds can the franchisor terminate the agreement?
The franchisor can terminate the franchise agreement prior to its expiration for good cause, which includes the failure of the franchisee to comply with any lawful provision of the franchise agreement and failing to cure such failure after being given written notice and a reasonable opportunity (at least 30 days) to do so [p.251].
What financial requirements — net worth and liquid capital — do I need to qualify?
This isn't specified in the excerpts.
Do I get an exclusive or protected territory?
No, you do not receive an exclusive territory. According to [p.50], your Territory provides limited competitive protection within a three-mile radius around your Restaurant, but does not exclude non-traditional venues and offers no protection from competitors outside the physical boundary of your Restaurant's Territory.
What training and ongoing support does the franchisor provide?
The franchisor provides pre-opening team support for the first four new Restaurant openings, including site selection assistance, construction and design help, local promotion guidance, and operational post-opening support as needed [p.88]. Additionally, initial franchise fee training is provided for the Designated Principal, other Controlling Principals, and salaried managers, though travel, lodging, and meal expenses are the responsibility of the franchisee [p.28, p.46]. Ongoing support includes required attendance at an initial restaurant training program before operation begins [p.46], with additional position and manager on duty training for Controlling Principals as needed [p.46].
How many franchised outlets are there, and how many have closed or been terminated?
Based on the provided excerpts, there is no specific information about the number of franchised outlets that have closed or been terminated. This isn't specified in the excerpts.
Does the franchisor share any financial performance or earnings information?
The franchisor may provide written substantiation for past financial performance upon request [p.72]. However, they do not make representations about future financial performance of new franchisees or existing outlets unless specific conditions are met, such as providing actual records of an outlet being considered for purchase [p.67].
What am I restricted to selling, and where must I buy supplies?
You must operate under the System's business model and use specific proprietary products like sauces and seasonings, which you must purchase from designated suppliers. This is detailed on [p.9]. For supplies, while there are no strict requirements to buy from the franchisor or affiliates for all items ([p.33]), certain proprietary products must be purchased from them, as stated in [p.9].