Alohana Hawaiian Grill
Date Incorporation: 2006
Franchising Since: 2006
Headquarters: California
Description: The franchise operates quick service restaurants providing on-premises dining, catering and carry-out of traditional Hawaiian dishes, beverages and related menu items.
Franchise Offer: The franchisee will be granted the right to a distinctive method for operating a Hawaiian barbecue/grill style restaurant, serving traditional Hawaiian style barbecue menu items for on-premises dining, catering and carry-out.
Financial Assistance: The franchisor does not offer direct or indirect financing, or guarantee the note, lease or obligation of the franchisee.
Training and Assistance: The initial training program generally lasts 12 calendar days, depending on the franchisee’s experience level, and is conducted on-site at an Alohana Restaurant location. A "calendar day" is considered to be 8-12 hours of classroom and ‘on-the-job’ work. The franchisee and manager must complete the initial training Program to the franchisor’s full satisfaction before beginning operation of the business.
Territory: The franchisee is granted an exclusive territory, if they are operating a non-branch franchise. The franchisor will not establish a Traditional Alohana restaurant or grant a franchise for the operation of a Traditional Alohana restaurant within the defined territory. The territory is a circular area defined by a radius of 1.5 miles from the front door of the Alohana restaurant. If the franchisee is operating a Branch restaurant they will not receive an exclusive Territory.
Term of Agreement and Renewal: The length of the franchise term is 10 years, with an option for renew for a single 5-year term.
Obligations and Restrictions: The franchisee must personally manage the franchised business on a full-time basis, unless agreed otherwise in writing. The franchisor strongly recommends on-site management by the franchisee. The franchisee and manager must successfully complete Initial Training and always meet all training requirements. The franchisee must keep the franchisor advised of the manager's and other supervisors' identities.
Total Number of Units: 2 outlets at the end of 2007
Total Number of franchises Units: 1 franchised outlet at the end of 2007
Investment Tables:
Initial Investment:
| Expenditures | Low | High |
|---|---|---|
| Initial Franchise Fee | $25,000(standard), $15,000 (branch $10,000 w/ Conversion Addendum |
$25,000(standard), $15,000 (branch $10,000 w/ Conversion Addendum |
| Expenses While Training | $500 | $4,800 |
| Real Estate and Improvements | $75,000 | $250,000 |
| Furniture, Fixtures and Equipment | $61,200 | $82,000 |
| Initial Inventory | $8,000 | $10,000 |
| Deposits | $12,000 | $15,000 |
| Architect Fees and Related Permit Fees | $10,000 | $15,000 |
| Insurance | $4,500 | $5,100 |
| Initial Marketing Program | $2,000 | $5,000 |
| Miscellaneous Costs to Commence Operations | $10,000 | $15,000 |
| Additional Funds - 3 months | $25,000 | $30,000 |
| TOTAL | $218,200 | $456,900 |
Ongoing fees:
| Name of Fee | Amount |
|---|---|
| Royalty | 3% of gross sales |
| Default royalty | $1,500 (subject to inflation adjustment) |
| Marketing Fund Contributions | Up to 2% of monthly gross sales. Currently the fee is 1% monthly |
| Interest on Late Payments and Administrative Late Fee | Interest is 1.5% per month. Administrative late fee of $400 per late report and/or payment |
| Successor Franchise Fee | $5,000 |
| Transfer Fee | $5,000 |
| Audit Expenses | Cost of audit and understatement, plus interest |
| Additional Mandatory Training/ Meeting/ Conventions (other than your initial training) | To be determined. |
| Initial Training Program Fees | The fee is waived for the initial two attendees under a standard franchise agreement. The designated manager for existing franchisees establishing a branch restaurant, depending upon their level of experience with the system, will attend either a 3-day training program at no cost, or the 12-day training program for $1,400 (1/2 of the initial training program fee). Franchisees signing a conversion addendum must pay the $2,800 initial training program fee (includes the 12-day training for up to two attendees at the same program). We can adjust the fee. |
| Consultation Fee on Layout and Development of Your Restaurant | Only applicable for our consulting time in excess of 1.5 hours in any given week during planning and build out; Currently $175 per hour, but subject to change. |
| Continuing and/or Additional Training and On Site Consultation Fee | Currently $125-$200 per day (8 hours or any portion thereof), depending on the consultant/trainer/services required; rates subject to change. |
| Technology Fee | No fee charged as of the effective date |
| Restaurant Maintenance and Remodel | As determined |
| Architectural Drawings Review Fee | Currently $175 per hour, but subject to change |
The above information has been taken from the UFOC/FDD of Alohana Hawaiian Grill
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