Hawaiian Bros Island Grill Franchise
Cost, fees, owner earnings, closure rate and litigation for a Hawaiian Bros Island Grill franchise — pulled from the franchisor's own public FDD (2026), not its sales material.
Disclosure honesty
Hawaiian Bros Island Grill discloses earnings (Item 19) — but the grade is how honestly. We graded it B.
What their own earnings claim actually says
Provides gross sales data for 51 traditional restaurants (21 company-owned, 30 franchised) in operation 12 months. Average $2.37M gross sales; median $2.18M. Lowest $1.22M, highest $4.17M. Limited to traditional formats; excludes 13 special outlets.
What a Hawaiian Bros Island Grill franchise actually costs to run
| Fee | Disclosed | Where it comes from |
|---|---|---|
| Initial franchise fee | $50,000 | Item 5 — paid up front, before you open |
| Royalty | 5% of gross sales | Item 6 — charged on revenue, not profit |
| Advertising fund | 3% of gross sales | Item 6 — brand marketing, spent at the franchisor's discretion |
| Total recurring fees | 8% of gross sales | Before rent, labor, food or debt service |
| Total initial investment | $1,402,536 – $4,163,150 | Item 7 — franchisor's own low/high estimate |
Royalty 5% for first 5 years (if signed before 4/27/27), then 6%. Ad fund 3%, local advertising 1%. IT support $300/month.
Royalty and ad-fund percentages are charged on gross sales — an owner pays them whether or not the location is profitable.
Hawaiian Bros Island Grill system size and owner turnover
| Total outlets | 60 |
| Ceased operations | 1 |
| Terminated by franchisor | 0 |
| Transferred to new owners | 0 |
| Closure rate | 1.7% of outlets |
One franchised outlet closed 2025 after 12+ months operation; minimal terminations/transfers indicate low failure rate.
From Item 20 of the FDD 2026. Terminations and ceased operations are the franchisor's own count of owners who stopped — the number the sales pitch leaves out.
Is Hawaiian Bros Island Grill worth it? — how it compares to 164 similar franchises
| Ongoing fees | 8% of sales | lower than most (median 8%) |
| Startup cost | from $1,402,536 | pricier than 90% of peers |
| Disclosure honesty | Grade B | more honest than 85% of quick service restaurants franchises |
| Closure rate | 1.7% of outlets | about average |
| Disclosed lawsuits | 0 | fewer than most |
Benchmarked against every quick service restaurants franchise we've graded from public FDDs — the context the franchisor's pitch never gives you.
Owner take-home for a Hawaiian Bros Island Grill
The franchisor's framing: Provides gross sales data for 51 traditional restaurants (21 company-owned, 30 franchised)… We reconstruct what an owner actually keeps, from their own FDD.
- Reconstructed owner P&L — net take-home after royalty, ad fund, rent, labor & debt
- Break-even timeline + cash-on-cash ROI
- Full fee stack + required-purchase markups
- Decoded real failure / closure rate
- How it ranks vs comparable franchises
- Validation-call playbook — the exact questions to ask
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Hawaiian Bros Island Grill franchise — frequently asked
- How much does a Hawaiian Bros Island Grill franchise cost?
- The FDD lists a total initial investment of about $1,402,536–$4,163,150, including a $50,000 initial franchise fee.
- How much do Hawaiian Bros Island Grill franchise owners make?
- Provides gross sales data for 51 traditional restaurants (21 company-owned, 30 franchised) in operation 12 months. Average $2.37M gross sales; median $2.18M. Lowest $1.22M, highest $4.17M. Limited to traditional formats; excludes 13 special outlets. We grade this disclosure B for honesty.
- What are the Hawaiian Bros Island Grill franchise fees?
- Hawaiian Bros Island Grill's FDD discloses a $50,000 initial franchise fee, a 5% royalty on gross sales, a 3% advertising-fund contribution, for roughly 8% of gross sales in recurring fees before rent, labor, or debt service. Royalty 5% for first 5 years (if signed before 4/27/27), then 6%. Ad fund 3%, local advertising 1%. IT support $300/month.
- What is the Hawaiian Bros Island Grill franchise profit margin?
- Hawaiian Bros Island Grill does not publish a franchisee net-profit margin — almost no franchisor does. What Item 19 actually shows: Provides gross sales data for 51 traditional restaurants (21 company-owned, 30 franchised) in operation 12 months. Average $2.37M gross sales; median $2.18M. Lowest $1.22M, highest $4.17M. Limited to traditional formats; excludes 13 special outlets. Recurring fees alone take about 8% of gross sales, before rent, labor, food or debt service. Margin has to be reconstructed from the disclosure, not read off it.
- What is the Hawaiian Bros Island Grill franchise failure rate?
- One franchised outlet closed 2025 after 12+ months operation; minimal terminations/transfers indicate low failure rate.
- How many Hawaiian Bros Island Grill locations are there?
- Hawaiian Bros Island Grill's FDD reports 60 total outlets, with 1 that ceased operations in the most recent reporting year and 0 transferred to new owners. Item 20 is where system health shows up before the marketing does.
- Does Hawaiian Bros Island Grill have complaints or lawsuits?
- Hawaiian Bros Island Grill discloses no material litigation in Item 3 of the filing we reviewed. That's a positive signal, though it covers only what the franchisor is required to report.
- Is a Hawaiian Bros Island Grill franchise worth it?
- It depends on the numbers, not the pitch. Hawaiian Bros Island Grill scores B on disclosure honesty, carries about 8% of sales in ongoing fees. Get the real owner take-home before you sign.
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Source: WI DFI Franchise Registration (2026). FranchiseValidate is independent and not affiliated with Hawaiian Bros Island Grill or its franchisor. Figures are extracted from the franchisor's own public disclosure document; verify against the current FDD before any decision.