For Hawaiian Bros Island Grill, are Controlling Principals required to sign a guaranty?

According to the 2025 Hawaiian Bros Island Grill FDD, each person the company designates, including Principals and Controlling Principals, must sign an agreement to be bound by confidentiality, non-competition, and non-solicitation covenants. This agreement is in the form attached as Exhibit E, referred to as the Confidentiality and Non-Competition Agreement.

This requirement means that if you are a Hawaiian Bros Island Grill franchisee, any individuals you designate as Principals, General Managers, Executive Management, or anyone else identified on Exhibit C, must sign this agreement. This ensures that these key individuals are legally bound to protect the company's confidential information and refrain from competing with the franchise during and after their association with it.

This is a fairly standard practice in franchising. Franchisors like Hawaiian Bros Island Grill use these agreements to protect their business model, trade secrets, and customer relationships. By requiring these agreements, Hawaiian Bros Island Grill aims to minimize the risk of franchisees or their key personnel using confidential information to start a competing business or soliciting employees or customers after leaving the franchise system. Prospective franchisees should carefully review Exhibit E to understand the full scope of these obligations before signing the franchise agreement.