For Afuri Ramen Dumpling, when does the addendum expire regarding the development schedule?
Afuri_Ramen_Dumpling Franchise · 2024 FDDAnswer from 2024 FDD Document
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- Termination and Expiration. This Addendum will expire at the earlier of the following: (1) the opening of your last Franchise under your Development Schedule; or (2) the termination of this Addendum under to the terms and conditions of this Addendum or the Franchise Agreement. If you do not comply with the Development Schedule, we will have the right to reduce the size of (or change) your Development Area or terminate this Addendum and any of your Franchise Agreements representing Franchises that have not yet opened for business. Such termination will be effective upon written notice to you. Thereafter, we and our affiliates will have the right to operate or grant to others the right to operate outlets within the Development Area. However, your Franchise Agreement(s) and Territory(ies) for each of your operating Franchises will remain in force. Any failure to meet the Development Schedule caused by a war or civil disturbance, a natural disaster, a labor dispute, shortages or other events beyond your reasonable control (not including financial circumstances) will be excused for a period of time that we deem reasonable under the circumstances.
Source: Item 23 — Receipts (FDD pages 50–189)
What This Means (2024 FDD)
According to Afuri Ramen Dumpling's 2024 Franchise Disclosure Document, the addendum concerning the development schedule will expire based on two conditions. The first condition is the opening of the last franchise under the franchisee's development schedule. The second condition is the termination of the addendum based on its own terms, or the terms and conditions outlined in the Franchise Agreement.
Afuri Ramen Dumpling stipulates that if a franchisee fails to comply with the development schedule, Afuri Ramen Dumpling has the right to reduce the size of, or change, the development area. Afuri Ramen Dumpling also has the right to terminate the addendum and any franchise agreements representing franchises that have not yet opened for business. This termination becomes effective upon written notice to the franchisee. After termination, Afuri Ramen Dumpling and its affiliates retain the right to operate or grant others the right to operate outlets within the development area.
However, the Franchise Agreement(s) and Territory(ies) for each of the franchisee's operating franchises will remain in force, even if the addendum is terminated. Any failure to meet the development schedule caused by events beyond the franchisee's control, such as war, civil disturbance, natural disaster, labor disputes, or shortages (excluding financial circumstances), will be excused for a period of time that Afuri Ramen Dumpling deems reasonable under the circumstances.