Who benefits from the goodwill associated with the Afuri Ramen Dumpling Marks?
Afuri_Ramen_Dumpling Franchise · 2024 FDDAnswer from 2024 FDD Document
n a majority interest. The term "you" will include all persons who succeed to your interest by transfer or by operation of law.
- B. We have certain rights to, have registered in various jurisdictions, and intend to continue to develop names, trademarks, service marks, logos, commercial symbols, and styles. These include, but are not limited to, "Afuri®," "Afuri Ramen + Dumpling®," and related logos (the " Marks"). We own valuable goodwill and have valuable expertise, Confidential Information (defined below), methods, procedures, techniques, uniform standards, operations manuals, inventory control guidelines, systems, layouts, merchandise, and materials. These are connected with the operation, promotion, and advertising of businesses that operate fast-casual restaurants that offer freshly prepared ramen (Japanese style noodle) dishes with a diverse selection of broths, noodles, proteins, sauces and garnishes as well as sushi, rice bowls, Japanese appetizers and other food and beverage products under the Marks (the "System").
- C. As a franchisee, you are in an independent contractor relationship with us. You independently own and operate your Franchise. While we establish standards and recommendations for desired outcomes to protect our systems and brand, as an independent contractor franchisee, you generally determine the means to accomplish such outcomes. You are responsible for the day-to-day operation of your Franchise.
- D. You desire us to train you and to authorize you to operate a high-caliber Afuri franchise and to use our System and Marks. We are willing to grant you such a franchise on the terms and conditions set forth in this Agreement.
AGREEMENT
THEREFORE, in consideration of the mutual promises and covenants contained in this Agreement, the parties agree as follows:
1 GRANT OF FRANCHISE AND FRANCHISE TERRITORY
- 1.1 Grant of Franchise and Franchise Territory. We grant to you, and you accept from us, the franchise, license, and privilege to use the Marks, the System, and merchandise bearing the Marks, for 10 years from the date of this Agreement (the "Franchise").
Source: Item 23 — Receipts (FDD pages 50–189)
What This Means (2024 FDD)
According to the 2024 Afuri Ramen Dumpling Franchise Disclosure Document, Afuri Franchise, Inc. owns valuable goodwill associated with the Afuri Ramen + Dumpling marks. This means that the franchisor benefits from the reputation and brand recognition associated with the trademarks, service marks, logos, and commercial symbols they have developed and registered.
As a franchisee, you are independently owning and operating your franchise. Afuri Ramen Dumpling establishes standards and recommendations to protect their systems and brand. The FDD states that franchisees must not do anything harmful to the goodwill associated with the Marks and System. This indicates that Afuri Ramen Dumpling places significant importance on protecting its brand reputation and the goodwill associated with its marks, as any damage to this goodwill could negatively impact the entire franchise system.
Upon termination of the franchise agreement due to franchisee default, the franchisee is liable to pay Afuri Ramen Dumpling for any harm to the goodwill associated with the licensed marks. This highlights the franchisor's emphasis on preserving the brand's reputation and the financial consequences a franchisee may face for actions that damage the brand's goodwill. The franchisor can seek damages for harm to the goodwill associated with the licensed marks, and increased costs to re-develop or re-franchise the market in which the Franchised Operation is located.