Does Afuri Ramen Dumpling define the term 'Franchise Territory' in the FDD?
Afuri_Ramen_Dumpling Franchise · 2024 FDDAnswer from 2024 FDD Document
chise Premises and Franchise Territory
You will be given a specific territory for your Franchise (the "Franchise Territory" or "Territory"). A typical franchise territory will be a mileage radius around the center of the Franchise Premises. The standard radius is 5 miles, but the radius may be as low as 1/4 of a mile in downtown urban areas. We reserve the right to designate a different mileage radius based on factors we deem reasonable. For example, your Franchise Territory may vary in size and dimensions based on population, growth trends, affluence of nearby population, topography, geography, density and demographics. The Franchise Territory will be identified in Section 1.1 of the Franchise Agreement. The exact determination of the Franchise Territory will depend upon our market analysis, market penetration plans and franchise placement strategies. Among the factors we may consider to determine the feasibility of possible franchise territory locations are population demographics and other businesses in the area pursuant to census and chamber of commerce information.
You are responsible for selecting the site location for your Franchise ("Franchise Premises") subject to our approval. The factors we may consider in approving or rejecting proposed site selections include general location and neighborhood; traffic patterns; parking; physical characteristics of existing buildings; lease terms; population density; and population demographics. Also, we typically require that the Franchise Premises be at a new building (as opposed to a "second generation"
Source: Item 16 — Restrictions on What the Franchisee May Sell (FDD page 40)
What This Means (2024 FDD)
According to Afuri Ramen Dumpling's 2024 Franchise Disclosure Document, the term 'Franchise Territory' is defined. The document specifies that a franchisee will be given a specific territory for their Franchise, referred to as the "Franchise Territory" or "Territory." This territory is typically a mileage radius around the center of the Franchise Premises, with a standard radius of 5 miles, although it may be as low as 1/4 of a mile in downtown urban areas. Afuri Ramen Dumpling retains the right to designate a different mileage radius based on factors they deem reasonable. The Franchise Territory will be identified in Section 1.1 of the Franchise Agreement.
The size and dimensions of the Franchise Territory may vary based on factors such as population, growth trends, affluence, topography, geography, density, and demographics. The determination of the Franchise Territory depends on Afuri Ramen Dumpling's market analysis, market penetration plans, and franchise placement strategies, considering factors like population demographics and other businesses in the area. While franchisees receive a protected territory, it is not exclusive, meaning they may face competition from other franchisees, company-owned outlets, or other distribution channels. However, Afuri Ramen Dumpling will not establish or authorize anyone else to place an Afuri restaurant within the franchisee's Franchise Territory.
Prospective franchisees should note that they do not receive rights of first refusal to acquire additional franchises or subfranchises within or contiguous to their Franchise Territory. Furthermore, franchisees are restricted from using alternative distribution channels to make sales outside their territory, except as allowed in the Operations Manual. Any catering and delivery services must be within the Franchise Territory, and advertisements using Afuri Ramen Dumpling's trade names or service marks are generally limited to the Franchise Territory, subject to certain exceptions with prior written permission. All internet marketing must be coordinated through and approved by Afuri Ramen Dumpling, and franchisees cannot acquire independent internet domain names or websites.