What is the geographic scope of the non-compete restriction during the term of the Hawaiian Bros Island Grill agreement?

According to the 2025 Hawaiian Bros Island Grill Franchise Disclosure Document, during the term of the agreement, the franchisee and each controlling principal are restricted from owning or operating a Competitive Business. This restriction applies to any Competitive Business that is located, operates, advertises, or provides services in the United States or any other country where a Hawaiian Bros Restaurant is located. This restriction is in place for as long as the Controlling Principal has an Ownership Interest in the Developer.

This means that while operating a Hawaiian Bros Island Grill franchise, franchisees and their controlling principals cannot be involved in any competing business within the United States or any country where Hawaiian Bros Island Grill has a presence. This is a fairly standard non-compete clause in franchising, designed to protect the brand and prevent franchisees from directly competing with the system while benefiting from its resources and trade secrets.

Prospective franchisees should carefully consider the breadth of this restriction, especially if they have existing business interests or plan to invest in other ventures during the term of the franchise agreement. It is important to understand what constitutes a "Competitive Business" according to the franchise agreement and how this definition might impact other business opportunities. Franchisees should also be aware of the implications for their controlling principals, who are also subject to the non-compete obligations.