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SUBJECT DOSSIER · FDD 2026

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.

Quick Service Restaurants · disclosure-honesty grade · from public state filings

Disclosure honesty

B
Transparency 4 / 5

Hawaiian Bros Island Grill discloses earnings (Item 19) — but the grade is how honestly. We graded it B.

Outlets60
Disclosed lawsuits0
Closure signals1 ceased
Investment
$1,402,536–$4,163,150
Total fees
8% of sales
Outlets
60
Closure signals
1 ceased, 0 terminated
Lawsuits
0
◢ FINDINGS
ITEM 20
1 outlets ceased operations
One franchised outlet closed 2025 after 12+ months operation; minimal terminations/transfers indicate low failure rate.

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

FeeDisclosedWhere it comes from
Initial franchise fee$50,000Item 5 — paid up front, before you open
Royalty5% of gross salesItem 6 — charged on revenue, not profit
Advertising fund3% of gross salesItem 6 — brand marketing, spent at the franchisor's discretion
Total recurring fees8% of gross salesBefore rent, labor, food or debt service
Total initial investment$1,402,536 – $4,163,150Item 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 outlets60
Ceased operations1
Terminated by franchisor0
Transferred to new owners0
Closure rate1.7% 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 fees8% of saleslower than most (median 8%)
Startup costfrom $1,402,536pricier than 90% of peers
Disclosure honestyGrade Bmore honest than 85% of quick service restaurants franchises
Closure rate1.7% of outletsabout average
Disclosed lawsuits0fewer than most

Benchmarked against every quick service restaurants franchise we've graded from public FDDs — the context the franchisor's pitch never gives you.

◤ CLASSIFIED · ITEM 19 RECONSTRUCTED

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.

LOW
MEDIAN
HIGH

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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.