Regarding a Hawaiian Bros Island Grill Development Area, where can the geographic area be described?
Hawaiian_Bros_Island_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
Development Area means that particular area, as specifically described in Exhibit A to this Agreement, in which Developer will have development rights. The Development Area will in all cases be deemed to exclude any and all Non-Traditional Venues physically located within the Development Area, meaning that all such Non-Traditional Venues will not be deemed to be a part of the definition of the Development Area, Developer may not operate at such Non-Traditional Venues, and there are no restrictions whatsoever on Company's activities in or at those Non-Traditional Venues, including, but not limited to, its right to operate, and grant others the right to engage in foodservice operations under the Marks, at such Non-Traditional Venues.
Source: Item 23 — RECEIPTS (FDD pages 77–262)
What This Means (2025 FDD)
According to the 2025 Hawaiian Bros Island Grill FDD, the Development Area, which is the specific area where a developer has rights, is detailed in Exhibit A of the Development Agreement. The Development Area excludes any Non-Traditional Venues physically located within it. This means that Hawaiian Bros Island Grill places no restrictions on their activities, including operating or granting others the right to operate foodservice under their trademarks, within these Non-Traditional Venues, regardless of their location within the Development Area.
This delineation is important for potential developers as it clarifies the scope of their exclusive rights. While a developer may have the right to develop Hawaiian Bros Island Grill restaurants within a certain geographic area, this right does not extend to Non-Traditional Venues within that area. Non-Traditional Venues could include locations like airports, universities, or stadiums. Hawaiian Bros Island Grill retains full control over these venues, allowing them to operate or franchise other locations within them without impacting the developer's rights in traditional restaurant locations.
Prospective developers should carefully review Exhibit A to fully understand the boundaries of their Development Area and be aware of the exclusion of Non-Traditional Venues. This understanding is crucial for assessing the potential market and planning the development of Hawaiian Bros Island Grill restaurants within the designated area. Developers should also inquire about any existing or planned Non-Traditional Venues within their Development Area to fully understand the competitive landscape.