Does the Afuri Ramen Dumpling agreement address successors and assigns?
Afuri_Ramen_Dumpling Franchise · 2024 FDDAnswer from 2024 FDD Document
- A. For purposes of this Agreement "you" may include an individual, corporation, partnership, limited liability company or other legal entity. "You" includes any corporation, partnership, limited liability company, individual, combination of individuals, or other legal entity that owns a majority interest of you, or in which you own a majority interest. The term "you" will include all persons who succeed to your interest by transfer or by operation of law.
-
- Assignment to Franchisor. Anything contained in the Lease Agreement to the contrary notwithstanding, Landlord agrees that without Landlord's consent, the Lease Agreement and Tenant's right, title and interest, may be assigned by Tenant to Franchisor, without cost or penalty. Landlord grants to Franchisor the right, at Franchisor's election, to receive an assignment of the Lease Agreement and the leasehold interest in the Franchise Premises, upon termination or expiration of Tenant's Franchise Agreement. This option may be exercised by Franchisor within 30 days of such termination or expiration.
AFURI FRANCHISE INC.
listings; websites, website addresses, and domain names media content and accounts will deliver it to interested third parties, between us and you dated corporation ("we/us"), you assign to us all business telephone numbers; business telephone and internet related to our brand or the franchise; social related our brand or the franchise; and business email addresses you use in the operation of the franchise. The foregoing sentence does not grant you rights beyond those expressly granted by the franchise agreement or our franchise operations manual. We will hold this assignment, and only upon expiration or termination of the Franchise Agreement
Source: Item 23 — Receipts (FDD pages 50–189)
What This Means (2024 FDD)
According to the 2024 Afuri Ramen Dumpling FDD, the franchise agreement does address successors and assigns. The agreement states that the term "you" includes all persons who succeed to the franchisee's interest by transfer or by operation of law. This means that if the franchisee's interest in the franchise is transferred to another party, whether through a sale, inheritance, or other legal means, that party will be bound by the terms of the franchise agreement.
Additionally, the lease agreement for the franchise premises can be assigned by the tenant (franchisee) to Afuri Ramen Dumpling without the landlord's consent. Afuri Ramen Dumpling also has the right to receive an assignment of the lease agreement and the leasehold interest in the franchise premises upon termination or expiration of the franchisee's Franchise Agreement. This option can be exercised by Afuri Ramen Dumpling within 30 days of such termination or expiration.
Furthermore, as part of the franchise agreement, the franchisee assigns to Afuri Ramen Dumpling all business telephone numbers, business telephone and internet listings, website addresses and domain names related to the brand or the franchise, social media content and accounts related to the brand or the franchise, and business email addresses used in the operation of the franchise. This assignment is conditional and is only held by Afuri Ramen Dumpling upon the expiration or termination of the Franchise Agreement.
These provisions protect Afuri Ramen Dumpling's interests in the event of a transfer of the franchise or termination of the franchise agreement, ensuring that the brand and its associated assets remain under the control of the franchisor. A prospective franchisee should carefully consider these provisions and their implications before entering into a franchise agreement with Afuri Ramen Dumpling.