Does Hawaiian Bros Island Grill require franchisees to protect confidential information?
Hawaiian_Bros_Island_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
E. In consideration of Franchisee's Associate's relationship with Franchisee, Franchisee's Associate agrees to comply with the provisions of this Agreement. Franchisee's Associate also agrees the restraints imposed by this Agreement are reasonable and necessary to protect Franchisee's business,
Franchisor, Franchisor's franchisees, and the System.
AGREEMENT
1. CONFIDENTIALITY COVENANTS
- (a) Receipt of Confidential Information. Franchisee and Franchisee's Associate acknowledge that, as a part of Franchisee's Associate's relationship with Franchisee, Franchisee's Associate will receive and be entrusted with certain Confidential Information.
- (b) Duty of Confidentiality. Franchisee's Associate will not at any time, during or after such Franchisee's Associate's relationship with Franchisee, communicate or disclose to any individual or business entity (each a "Person") other than those employees of Franchisee to whom such disclosure is necessary in relation to performance of their job duties, or use for Franchisee's Associate's own benefit or for the benefit of any Person other than Franchisor or Franchisee in connection with the operation of a Hawaiian Bros Restaurant, any Confidential Information that Franchisee's Associate acquired during such Franchisee's Associate's relationship with Franchisee. Franchisee's Associate understands and agrees that any and all Confidential Information, including methods, procedures, suggested pricing, specifications, processes, materials, techniques and other data, may not be used for any purpose other than in connection with Franchisee's development or operation of a Hawaiian Bros Restaurant.
- (c) Return of Confidential Information. Franchisee's Associate will return all Confidential 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
Source: Item 14 — PATENTS, COPYRIGHTS, AND PROPRIETARY INFORMATION (FDD page 55)
What This Means (2025 FDD)
Yes, according to the 2025 Franchise Disclosure Document, Hawaiian Bros Island Grill requires both franchisees and their associates to uphold strict confidentiality regarding sensitive information. Franchisee's associates, as part of their relationship with the franchisee, will receive and be entrusted with confidential information, and they are obligated not to disclose this information to any unauthorized individuals or entities. This duty extends both during and after their association with the franchisee. The confidential information includes methods, procedures, suggested pricing, specifications, processes, materials, techniques, and other data related to the operation of a Hawaiian Bros Island Grill restaurant.
Franchisee's associates are explicitly prohibited from using confidential information for their own benefit or for the benefit of anyone other than the franchisor or franchisee. The agreement emphasizes that this information is solely for the development or operation of a Hawaiian Bros Island Grill restaurant. Upon termination or transfer of the franchise agreement, or at the franchisee's request, the franchisee's associate must return all confidential information acquired during their relationship with the franchisee.
This requirement ensures that Hawaiian Bros Island Grill maintains control over its proprietary information and operational methods, which is typical in franchising. By extending the confidentiality obligation to the franchisee's associates, Hawaiian Bros Island Grill aims to prevent leakage of sensitive data that could be detrimental to the brand or provide an unfair advantage to competitors. Prospective franchisees should understand that they are responsible for ensuring their associates comply with these confidentiality covenants, as any breach could have legal and financial repercussions.