L And L Hawaiian Barbecue
L & L Hawaiian Barbecue offers quick-service restaurants serving traditional Hawaiian cuisine. Known for its plate lunches and shave ice, it operates in the casual dining restaurant industry.
L And L Hawaiian Barbecue franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to begin operation of an L & L Hawaiian Barbecue franchised restaurant ranges from $253,950 to $838,460. This amount includes a mandatory payment of $35,000 to the franchisor or its affiliate [p.1].
What is the initial franchise fee?
The initial franchise fee is the amount specified on Appendix A, which must be paid in full upon signing the agreement and is fully earned at that time. This fee will not be refunded for any reason [p.92].
What are the ongoing royalty and advertising fees?
Ongoing royalty fees are based on a percentage of monthly sales and are recognized as income on an accrual basis. Advertising fees are a fixed monthly fee for restaurants located in Hawaii, and a percentage of monthly sales for those not located in Hawaii. [p.226, p.210, p.214, p.230]
How long is the initial franchise agreement, and can I renew it?
This isn't specified in the excerpts.
Can I sell or transfer my franchise, and what does that require?
Yes, you can transfer your franchise agreement to a new or existing franchisee, but this typically involves paying a transfer fee and signing a new agreement with the new franchisee. The current owner's franchise agreement will terminate upon completion of the transfer [p.230].
On what grounds can the franchisor terminate the agreement?
The franchisor can terminate the agreement if you voluntarily abandon the franchise relationship [p.267], are convicted of an offense directly related to the business conducted according to the Franchise Agreement, or fail to cure a default that materially impairs the goodwill associated with their trade name or other commercial symbols after receiving written notice [p.267]. Additionally, the franchisor may terminate for your failure to acquire, lease, or sublease a site for the Franchised Business [p.157].
What financial requirements — net worth and liquid capital — do I need to qualify?
This isn't specified in the excerpts. The FDD focuses on operating expenses, working capital needs, and financial performance representations but does not detail specific net worth or liquid capital requirements for qualifying as a franchisee.
Do I get an exclusive or protected territory?
No, you do not receive an exclusive or protected territory. According to the FDD excerpts, you are not granted any territorial exclusivity [p.54, p.89]. This means you may face competition from other franchisees, company-owned outlets, and other channels of distribution [p.54].
What training and ongoing support does the franchisor provide?
The franchisor provides support for architectural plans, interior and exterior design and layout, training, marketing, and opening assistance [p.214]. This support is intended to aid franchisees in developing, constructing, and operating their restaurants successfully.
How many franchised outlets are there, and how many have closed or been terminated?
The FDD does not provide a specific number of franchised outlets. It mentions that some company-owned restaurants exist but categorize them as 'franchised' for internal purposes. Regarding closures, zero Restaurants closed in 2024 after having been open for less than 12 months [p.72].
Does the franchisor share any financial performance or earnings information?
The franchisor may provide actual records of existing outlets upon request. However, they do not make any financial performance representations except for providing actual records of an existing outlet you are considering buying. [p.74] Additionally, any financial performance information provided is not a warranty or guarantee of your results. [p.143.3]
What am I restricted to selling, and where must I buy supplies?
You are restricted to offering only the products and services expressly authorized by the franchisor, as specified in the Manuals or otherwise. You must buy or lease equipment, products, and other materials required under the franchise agreement and as specified in the Manuals [p.94]. Additionally, you may have to purchase items from suppliers designated by the franchisor, which might be more expensive than others [p.3].