What agreements must a manager of an Afuri Ramen Dumpling franchise agree to be bound by?
Afuri_Ramen_Dumpling Franchise · 2024 FDDAnswer from 2024 FDD Document
omote, and enhance your franchise. You will not engage in any activity or business enterprise that conflicts with these obligations.
- 5.7.2 At all times the Franchise must be under your direct supervision. You will devote a substantial enough amount of time and energy to properly operate the Franchise. In your absence, the Franchise must be under the direct supervision of a manager who has successfully completed the required training programs and who devotes the necessary time during business hours to the management of the Franchise.
- 5.7.2 In express consideration for and during the term of this Agreement, neither you nor your owners, shareholders, members, partners, directors, officers, employees, consultants, distributors, or agents, nor the members of your or their immediate families or households (who have access to or knowledge of the Operations Manual or System), will directly or indirectly participate as an owner, shareholder, member, partner, director, officer, employee, consultant, franchisor, franchisee, distributor, advisor or agent, or serve in any other capacity in any business (including business in formation) directly or indirectly engaged or to be engaged in the offer, sale, internet dissemination, or promotion of: (1) ramen, (2) other Japanese style cuisine, (3) Vietnamese pho, or (4) any business that offers products or services that are essentially the same as, or substantially similar to, the products and services that are part of the System.
Source: Item 15 — Obligation to Participate in the Actual Operation of the Franchise Business (FDD pages 39–40)
What This Means (2024 FDD)
According to the 2024 Afuri Ramen Dumpling FDD, a manager must adhere to certain agreements to properly operate the franchise. In the franchisee's absence, the franchise must be under the direct supervision of a manager who has successfully completed the required training programs and devotes the necessary time during business hours to the management of the Franchise. This highlights the importance of having a trained and dedicated manager overseeing operations.
The manager, along with the franchisee's owners, directors, officers, partners, shareholders, members, employees, consultants, and agents, must agree to not divert or attempt to divert any of Afuri Ramen Dumpling's business or customers to a competing establishment. They also must agree to not perform any act that is injurious or prejudicial to Afuri Ramen Dumpling's goodwill associated with its Marks and System, both during the term of the agreement and for a period of two years after its expiration or termination. This ensures the protection of the brand's reputation and customer base.
Additionally, the manager must agree to a covenant of non-use, meaning they cannot use Confidential Information or the System, except as authorized by Afuri Ramen Dumpling. The franchisee will obligate their owners, board of directors, employees, and agents to the same non-use covenant. The manager must also agree to not disclose or use Afuri Ramen Dumpling's recipes in any manner other than in connection with Afuri franchises pursuant to the Franchise Agreement. These stipulations are in place to protect the franchisor's proprietary information and operational methods.