How does Afuri Ramen Dumpling define 'transfer' by a franchisee?
Afuri_Ramen_Dumpling Franchise · 2024 FDDAnswer from 2024 FDD Document
| Provision | Section in Franchise Agreement ("FA") | Summary |
|---|---|---|
| k. “Transfer” by franchisee – defined | FA Section 7.1 | Restrictions apply if you sell, transfer, assign, encumber, give, lease, or sublease (collectively called “transfer”) the whole or any part of the franchise agreement, substantial assets of the franchise, or ownership or control of you. |
Source: Item 17 — Renewal, Termination, Transfer, and Dispute Resolution (FDD pages 40–45)
What This Means (2024 FDD)
According to the 2024 Afuri Ramen Dumpling Franchise Disclosure Document, a transfer by a franchisee is broadly defined. Restrictions apply if a franchisee undertakes certain actions regarding the franchise agreement, its assets, or the ownership structure of the franchisee's business.
Specifically, the term 'transfer' encompasses a range of activities. These include selling, transferring, assigning, encumbering, giving, leasing, or subleasing the whole or any part of the franchise agreement. It also extends to the substantial assets of the franchise or any transfer of ownership or control of the franchisee's entity.
This broad definition means that franchisees must seek approval from Afuri Ramen Dumpling for various transactions, not just outright sales. This ensures that Afuri Ramen Dumpling maintains control over who operates its franchises and that any new operators meet their standards. Franchisees should carefully consider these restrictions before entering into any agreements that could be considered a transfer.