What is the definition of 'In-Term Restricted Period' for a Hawaiian Bros Island Grill franchisee?
Hawaiian_Bros_Island_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
ITION AND SOLICITATION; SPECIAL REPRESENTATIONS AND WARRANTIES**
- (a) In consideration of Company's providing operations and training to Franchisee and disclosing to Franchisee the System and other Trade Secrets, Franchisee and its Controlling Principals agree to the following non-competition and non-solicitation covenants:
- (1) During the Term, Franchisee and each Controlling Principal, for so long as such Controlling Principal has an Ownership Interest in Franchisee (as applicable, the "In-Term Restricted Period"), will not own or operate, directly or indirectly, or accept employment by, hold an inter
Source: Item 23 — RECEIPTS (FDD pages 77–262)
What This Means (2025 FDD)
According to the 2025 Hawaiian Bros Island Grill Franchise Disclosure Document, the 'In-Term Restricted Period' refers to the duration during which a franchisee and their controlling principals are subject to certain non-competition and non-solicitation covenants. Specifically, this period lasts for as long as the franchisee is operating under the franchise agreement. For controlling principals, it lasts as long as they maintain an ownership interest in the franchise. During this time, franchisees and their controlling principals are restricted from engaging in any Competitive Business.
A 'Competitive Business' is defined as any island-inspired or Hawaiian-themed restaurant, or any restaurant that advertises and serves Hawaiian cuisine. The restriction applies to owning, operating, or being employed by such a business, or holding an interest in, lending money to, serving as a guarantor for, or performing services for a Competitive Business. This restriction is applicable in the United States or any other country where a Hawaiian Bros Island Grill restaurant is located.
This means that while operating a Hawaiian Bros Island Grill franchise, a franchisee and their controlling principals cannot be involved with any competing Hawaiian-themed restaurant, ensuring full dedication to the Hawaiian Bros Island Grill brand and preventing conflicts of interest. This restriction is in place to protect the Hawaiian Bros Island Grill system, trade secrets, and goodwill. Franchisees acknowledge that this covenant is reasonable and necessary, and that they possess the skills to earn a livelihood outside of a competing business.