About L & L Hawaiian Barbecue Franchise
L & L Hawaiian Barbecue is a popular quick service restaurant franchise that brings authentic Hawaiian plate lunch cuisine to the mainland United States and beyond.
The menu features traditional Hawaiian favorites such as chicken katsu, kalua pork, loco moco, spam musubi, and BBQ short ribs, all served in generous portions that reflect the island tradition of the plate lunch.
The brand has been franchising since 1991 and has grown into one of the most recognized Hawaiian food chains in the country.
L & L Hawaiian Barbecue Franchise Cost & Fees
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $15,000.00 - $30,000.00 | One-time payment upon signing |
| Royalty Fee | 1.5% to 4% of Net Sales or $900 per month, whichever is greater of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | The greater of 1% to 2% of Net Sales (depending on geographic location in continental US) or $300 per month. Hawaii franchisees pay a flat fee of $305 per month. | National brand fund |
| Total Investment Range | $151,700 – $613,000 | Includes build-out, inventory, working capital |
The investment range of $152K–$613K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (1.5% to 4% of Net Sales or $900 per month, whichever is greater) and marketing fee (The greater of 1% to 2% of Net Sales (depending on geographic location in continental US) or $300 per month. Hawaii franchisees pay a flat fee of $305 per month.) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $30,000 | $30,000 |
| Construction Cost | $26,300 | $300,000 |
| Furniture, Fixtures, Equipment, and Exterior | $41,500 | $100,000 |
| Inventory | $4,500 | $8,000 |
| Rent Under Lease Arrangement (for 3 months) | $9,000 | $60,000 |
| Security Deposit for Lease | $3,000 | $10,000 |
| Branded Attire | $200 | $200 |
| Computer Equipment and Software | $2,000 | $3,000 |
| Insurance Costs and Deposits (for 3 Months) (including Workmen’s Compensation) | $6,500 | $22,800 |
| Travel and Living Expenses During Training | $3,700 | $7,500 |
| Utility Deposits | $0 | $1,500 |
| Professional Fees | $0 | $5,000 |
| Other Opening Costs | $10,000 | $20,000 |
| Additional funds (for 3 months) | $15,000 | $30,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $7,500.00 transfer fee and Franchisor’s training expenses |
| Renewal Fee | Up to $10,000.00 (plus $1,000.00 processing fee) |
| Audit Fee | Cost of audit plus interest (estimated range: $2,000.00 to $5,000.00), if understatement of at least 2% of Net Sales is found. |
| Liquidated damages | $10,000 per month and 8% of Net Sales |
| Insufficient Funds | At least $50.00 |
| Insurance | The cost of the required insurance coverage |
| Additional Training (non-sale management transfer) | $3,000.00 |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | Up to four (4) weeks of classroom instruction and on-the-job training. |
| Classroom Training | 18 hours |
| On-the-Job Training | 125 hours |
| Training Location | Honolulu, Hawaii or another designated location. |
| Additional Training | Additional training may be requested, recommended, or required by the franchisor. It will be held in Honolulu or another designated location. Franchisees must pay for their travel, lodging, food, and associated wages/compensation for personnel, but no tuition fee is charged for additional training. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Non-exclusive |
| Exclusive Territory | No |
| Description | Franchisees do not obtain any exclusive or protected territory and may face competition from other franchisees, company-owned outlets, or other distribution channels. The franchisor may open and operate company units or franchise to other franchisees in close proximity to an existing L & L Franchise System Restaurant. No minimum sales volume or market penetration contingencies are imposed. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | Ten (10) years |
| Renewal Term | One successive period of 10 years |
| Renewal Fee | Up to $10,000.00 (plus $1,000.00 processing fee) |
| Renewal Conditions | Franchisee must provide written notice of intent to renew (6-13 months prior to term end), pay processing and renewal fees (6 months prior), execute current franchise agreement and other documents (including personal guarantees and confidentiality agreements), be in compliance with all agreements and financial obligations, be current with third-party financial obligations, remodel/refurbish the restaurant to current standards, execute a general release, confirm right to operate for the renewal term, deliver an 'Addendum to Lease', have purchased/installed all required equipment (60 days prior), and successfully complete any required franchisee training. |
| Transfer Fee | $7,500.00 transfer fee and Franchisor’s training expenses |
| Transfer Conditions | Transfers require written approval and payment of a $7,500.00 transfer fee. Conditions include the transferee qualifying as a franchisee, assuming obligations, proving all debts paid, the transferor not being in default, the transferee completing mandatory training and signing a new franchise agreement on current terms, and releasing the franchisor. Transfers are subject to the franchisor's right of first refusal. |
| Termination for Cause | Termination can occur for reasons including maintaining false records, operating in a manner dangerous to public health/safety, selling unauthorized products, conviction of a relevant crime, disclosing confidential information, repeated defaults, abandoning operations, failure to rebuild after destruction, repeated underreporting of sales/fees, bankruptcy/insolvency, material misrepresentations, non-compliance with laws/regulations, or seizure of business by government/creditor. |
| Non-Compete Period | 24 months |
| Non-Compete Details | After termination or expiration, the franchisee may not engage in any competing business or have any employment or interest in any company, firm, restaurant, or other enterprise producing or selling similar “Hawaiian” food products for 24 months within five (5) miles of any existing L&L Franchise System Restaurant. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | No |
| Participation Details | If a sole proprietor, personal supervision is not required, but it is recommended to be the fully-trained operator if in a controlling stockholder, managing principal, or managing partner role. The L & L Franchise System Restaurant must be directly supervised by a manager who has successfully completed the training program. On-premises managers/supervisors need not have equity interest but must complete approved training. |
| Required Suppliers | Franchisees are required to purchase all food products, goods, certain supplies (printed paper goods), inventory, and services (Clover POS system software supported by FISERV, non-cash payment suppliers) only from approved suppliers (Exhibit G). Other goods (lettuce, tomatoes), supplies (cleaning products), inventory, and services (Internet services), and all computer hardware and software must meet franchisor specifications. Specific required products include Pepsi Cola fountain service products, Keoki’s (lau lau), J.R. Simplot (French fries), Best Foods/Hellmann’s (mayonnaise), Hormel (canned or processed meat products), Unilever’s Caldo de Pollo (chicken broth), Cargill Foods (readymade hamburger patties), McCormick (spices, extracts, food colors), Sun Noodle (ramen style noodles and soup base), Pasta Montana (elbow macaroni), Yamasa (soy sauce), Hawaiian Sun (Hawaiian juice drinks), Farmer’s Rice Cooperative (rice), L & L t-shirt logo bags, Lollicup (L & L logo cups), United Foods International (marinades), Certi-Fresh (breaded shrimp), Upper Crust Enterprises (breading), Loyalty Plant (mobile services), FISERV (merchant services and Clover Point of Sales System), Jolt Software (Operations platform), Frymaster (fryer kitchen equipment), and Wolf (flat griddle kitchen equipment). |
| Supply Restrictions | Franchisees must strictly follow the requirements of the Operations Manual, including amendments, and carry out all changes at their cost. The franchisor may require franchisees to provide sufficient information, photographs, drawings, samples, and other data for approval of unapproved sources, and may require samples to be delivered to an independent laboratory for testing. The franchisor reserves the right to add, delete, and/or change authorized products and raw materials for use by the Operator. |
| Franchisor Revenue from Suppliers | In 2021, L & L Franchise, Inc. received approximately $631,041.45 in rebates, incentives, and payments from various suppliers (Love’s Bakery, Yamasa, J.R. Simplot, Cherry Co., First Data, Hosoda Brothers, Palama Holdings, LLC, Fiserv, and Pepsi Cola). These payments constituted approximately 10% of L & L Franchise, Inc.’s total revenue of $5,038,198. Additionally, $22,214.00 from Certi-Fresh and $22,238.00 from Cargill were used to plan and host the 2021 annual L & L Franchise Convention. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | L & L Franchise, Inc. does not offer financing. L & L will not guarantee your note, lease or other obligations. |
L & L Hawaiian Barbecue Franchise Earnings — Item 19
L & L Hawaiian Barbecue does not include an Item 19 financial performance representation in their FDD. Contact information for current and former franchisees is listed in Item 20 of the FDD.
L & L Hawaiian Barbecue Litigation & Risk Flags
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
L & L Hawaiian Barbecue System Growth
L & L Hawaiian Barbecue currently operates 210 franchised locations and 0 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2019 | 13 | 5 | 200 |
| 2020 | 9 | 2 | 207 |
| 2021 | 7 | 4 | 210 |
Transfers: 14 | Closures: 11
State Registrations
Registered in 14 states: CA, HI, IL, IN, MD, MI, MN, NY, ND, RI, SD, VA, WA, WI
Franchisor Financials (Item 21)
Audited by KDLY LLC for year ending December 31, 2021.
L & L Hawaiian Barbecue Franchise — FAQ
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