What am I acknowledging regarding the Afuri Ramen Dumpling agreement when I sign it?
Afuri_Ramen_Dumpling Franchise · 2024 FDDAnswer from 2024 FDD Document
You acknowledge and confirm that the time, content and geographical restrictions contained in this Section are fair and reasonable.
They are not the result of overreaching, duress, or coercion of any kind by us.
You further acknowledge and confirm that your observance of the covenants contained in this Agreement will not cause you any undue hardship, financial or otherwise, and that enforcement of each of the covenants contained in this Agreement will not impair your ability to obtain employment commensurate with your abilities and on terms fully acceptable to you, or otherwise to obtain income required for the comfortable support of your family and the satisfaction of your creditors.
Source: Item 23 — Receipts (FDD pages 50–189)
What This Means (2024 FDD)
According to Afuri Ramen Dumpling's 2024 Franchise Disclosure Document, when signing the franchise agreement, you are acknowledging specific conditions related to non-competition after the agreement expires, terminates, or is transferred. Specifically, you acknowledge that the time, content, and geographical restrictions within the non-compete clause are fair and reasonable. This means you agree that these restrictions are not a result of overreach, duress, or coercion by Afuri Ramen Dumpling.
Furthermore, you are confirming that adhering to the covenants in the agreement will not cause you undue hardship, financially or otherwise. This includes acknowledging that enforcing these covenants will not impair your ability to find suitable employment or obtain income to support your family and creditors. This acknowledgment is a critical part of the agreement, indicating that you have considered the implications of the non-compete clause and find them acceptable.
The non-compete clause restricts you and your owners, shareholders, partners, directors, officers, employees, and agents (including their immediate families with knowledge of the Operations Manual or System) from participating in businesses that offer ramen, other Japanese-style cuisine, Vietnamese pho, or any business offering substantially similar products and services to the Afuri Ramen Dumpling system. This restriction applies within the Franchise Territory, a 50-mile radius of the Franchise Territory, a 50-mile radius of any Afuri Ramen Dumpling location, and within the United States of America for two years after the agreement ends.
Prospective franchisees should carefully review these non-compete terms and ensure they fully understand the scope and limitations before signing the agreement. It is advisable to seek legal counsel to assess the fairness and reasonableness of these restrictions in the context of their individual circumstances and future plans.