Does the Hawaiian Bros Island Grill non-compete agreement protect the company's trade secrets?
Hawaiian_Bros_Island_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
- (c) Developer and its Controlling Principals acknowledge that their covenant not to compete is reasonable and necessary to protect the business and goodwill of the System and to avoid misappropriation or other unauthorized use of the System and Company's other Trade Secrets.
- (e) Neither Developer nor any Principal shall at any time (i) appropriate or use the Trade Secrets, or any portion thereof, in any other business which is not within the Hawaiian Bros Island Grill franchise system, (ii) disclose or reveal any Trade Secret to any person other than to Developer's employees as may be necessary incident of their training, or (iii) communicate, divulge or use for the benefit of any other Person any Confidential Information, knowledge or know-how concerning the methods of development or operation of a Hawaiian Bros Restaurant.
Source: Item 23 — RECEIPTS (FDD pages 77–262)
What This Means (2025 FDD)
Yes, according to the 2025 Hawaiian Bros Island Grill Franchise Disclosure Document, the non-compete agreement is designed to protect the company's trade secrets. The agreement specifically acknowledges that the covenant not to compete is reasonable and necessary to protect the business and goodwill of the Hawaiian Bros Island Grill system. This includes preventing the misappropriation or unauthorized use of the system and the company's trade secrets.
The agreement also states that neither the developer nor any principal shall appropriate or use the trade secrets in any other business outside the Hawaiian Bros Island Grill franchise system. They are also prohibited from disclosing or revealing any trade secret to any person, except to the developer's employees as necessary for their training. Furthermore, they cannot communicate, divulge, or use any confidential information, knowledge, or know-how concerning the methods of development or operation of a Hawaiian Bros Restaurant for the benefit of any other person.
For a prospective franchisee, this means that upon signing the agreement, they are legally bound to protect the confidential information and trade secrets of Hawaiian Bros Island Grill. This includes not using this information for personal gain outside of the franchise agreement or sharing it with unauthorized parties. This is a standard practice in franchising to maintain the integrity and competitive advantage of the brand.