Is the non-compete covenant considered reasonable by Hawaiian Bros Island Grill?

Information that Franchisee's Associate acquires during the relationship with Franchisee upon the earlier of the following:

• i. the transfer, expiration or termination of the Franchise Agreement for any reason;
• ii. the termination of Franchisee's Associate's relationship with Franchisee; or
• iii. Franchisee's request.

or

2. NON-COMPETITION AND NON-SOLICITATION COVENANTS

• (a) Limitations on Competition. Franchisee and Franchisee's Associate acknowledge that the Confidential Information provides a competitive advantage and will be valuable to them in the operation of the Franchised Restaurant. In consideration for the disclosure to Franchisee's Associate of Confidential Information, and to protect the confidentiality and value of the Confidential Information and the goodwill of the System and Franchised Restaurant, Franchisee's Associate further agrees to the limitations on competition and solicitation set forth below.
• (b) Definition of Competitive Business. "Competitive Business" means any island-inspired Hawaiian-themed restaurant or restaurant that advertises and serves Hawaiian cuisine.
• (c) Non-Competition During Term of Franchise Agreement and Relationship with Franchisee. Franchisee's Associate will not, without Franchisee's and Franchisor's prior written consent, own or operate, directly or indirectly, or accept employment by, hold an interest in, lend money to, serve as a guarantor for, or perform services in any capacity for, any Competitive Business that is located, operates, advertises or provides services in the United States or in any other country where a Hawaiian Bros Restaurant is located, until the earlier of the following (the "Term"):
  • i. the transfer, expiration or termination of the Franchise Agreement for any reason;
  • ii. the termination of Franchisee's Associate's relationship with Franchisee.
• (d) Non-Competition After Term of Franchise Agreement or Relationship with Franchisee. During the Post-Term Period (as defined below), Franchisee's Associate may not, without Franchisee's and Franchisor's prior written consent, own or operate, directly or indirectly, or accept employment by, hold an interest in, lend money to, serve as a guarantor for, or perform services in any

capacity for, any Competitive Business that is located, operates, advertises or provides services in any of the following:

• i. Within the area comprised of a 20-mile radius of the Franchised Restaurant;
• ii. Within the area comprised of a 20-mile radius of any Restaurant then existing or under development, whether franchised or owned by Franchisor or any of its affiliates or licensees; or
• iii. Within 20 miles of any outer boundary of any territory for which Franchisor has granted development rights for the development of one or more Restaurants.
• (e) Non-Solicitation During the Term or the Post-Term Period. In addition, neither during the Term nor the Post-Term Period, will Franchisee's Associate, without Franchisee's and Franchisor's prior written consent, directly or indirectly, for himself or herself, or on behalf of any other Person:
  • i.

Source: Item 23 — RECEIPTS (FDD pages 77–262)