Is the Confidential Information licensed or sold to the Afuri Ramen Dumpling franchisee?

According to the 2024 Afuri Ramen Dumpling Franchise Disclosure Document, Confidential Information is licensed, not sold, to the franchisee. Specifically, Afuri Ramen Dumpling licenses the use of Afuri Data to the franchisee during the term of the Franchise Agreement at no cost. This license is solely for the franchisee's use in the operation of their franchise. The franchisee must maintain the Afuri Data as secret and confidential and cannot make it available to any unauthorized person without prior written consent from Afuri Ramen Dumpling.

This means that while franchisees can use the Confidential Information to operate their Afuri Ramen Dumpling franchise, they do not own it. The franchisor retains ownership and control over this information. Upon expiration or termination of the Franchise Agreement, the franchisee's right to use the Confidential Information ceases, and they must no longer use it.

This is a fairly standard practice in franchising. Franchisors typically license their trademarks, systems, and confidential information to franchisees, allowing them to operate under the brand while maintaining control over the brand's intellectual property. This allows Afuri Ramen Dumpling to maintain consistency and protect its proprietary information across all franchise locations.