What is the condition for the deadline to continuously operate the third Afuri Ramen Dumpling franchise?
Afuri_Ramen_Dumpling Franchise · 2024 FDDAnswer from 2024 FDD Document
| PERIOD | CONTINUOUSLY OPERATED | |
|---|---|---|
| First Franchise: Within 14 | 1 | 1 |
| Months of Franchise | ||
| Agreement Effective Date | ||
| Second Franchise: Earlier of | 1 | 2 |
| 14 | ||
| Months After Opening First | ||
| Franchise or 14 | ||
| Months After | ||
| Deadline for Opening First | ||
| Franchise | ||
| Third Franchise: Earlier of 14 | 1 | 3 |
| Months After Opening Second | ||
| Franchise or 14 | ||
| Months After | ||
| Deadline for Opening Second | ||
| Franchise |
Time is of the essence of this Development Schedule. For the avoidance of doubt, the Development Schedule set forth above is in lieu of the opening and mandatory training deadlines set forth in the Franchise Agreements contemporaneously executed with this Addendum.
In the event that you do not comply with the above Franchise opening and continuous operation requirements, we will have the right to terminate any of your franchise agreements representing franchises that have not yet opened for business. Any failure to commence operation 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.
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- Payment of Initial Franchise Fees. You shall pay the full Initial Franchise Fees for each Franchise at the time you contemporaneously sign the multiple Franchise Agreements. The Initial Franchise Fees are not refundable under any circumstances.
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- Training for First Franchise. We will have no obligation to provide franchise training to you at our expense except for the first Franchise you open.
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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;
Source: Item 23 — Receipts (FDD pages 50–189)
What This Means (2024 FDD)
According to the 2024 Afuri Ramen Dumpling Franchise Disclosure Document, time is of the essence regarding the development schedule. If a franchisee fails to meet the franchise opening and continuous operation requirements outlined in the development schedule, Afuri Ramen Dumpling has the right to terminate any franchise agreements for locations that have not yet opened. This means a franchisee must adhere strictly to the agreed-upon timeline for opening and operating their franchises, or risk losing the rights to develop those locations. This requirement is in place of the standard opening and training deadlines typically found in individual franchise agreements.
Certain circumstances can excuse a failure to commence operations, including war, civil disturbances, natural disasters, labor disputes, or shortages, provided these events are beyond the franchisee's reasonable control and are not related to financial issues. In such cases, Afuri Ramen Dumpling will grant a reasonable extension. However, this does not mean that financial difficulties will be considered a valid excuse for failing to meet the development schedule.
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, or even terminate the addendum and any franchise agreements for franchises that have not yet opened. This termination becomes effective upon written notice to the franchisee. After termination, Afuri Ramen Dumpling and its affiliates can operate or grant others the right to operate outlets within the previously assigned development area. However, the franchise agreements and territories for any already operating Afuri Ramen Dumpling franchises will remain in effect.