What is the 'Development Schedule' for commencing full operation of an Afuri Ramen Dumpling franchise, and when does it begin?
Afuri_Ramen_Dumpling Franchise · 2024 FDDAnswer from 2024 FDD Document
| 20, | between | AFURI | FRANCHISE | INC., | an | Oregon | corporation | ("we/us"), | and |
|---|---|---|---|---|---|---|---|---|---|
| and ("you"). | |||||||||
| executed [#] | 1. | Simultaneous Multiple Franchise Purchase. The parties have contemporaneously | |||||||
| Franchise Agreements, including this Addendum, as part of a multiple franchise purchase. | |||||||||
| 2. | following "Development Area": | Development Area. If the Franchise Premises has not been determined when this | |||||||
| Addendum is executed, you are responsible for selecting the site for your Franchise Premises within the | |||||||||
Subject to our reservations of rights in the Franchise Agreement, we will not establish or allow others to establish an Afuri business physically located within your Development Area using our Marks and System so long as the Franchise Agreements and corresponding Multiple Franchise Purchase Addenda are in force and you are not in default in any material provision of any such agreement. Upon termination of expiration of this Addendum (under Section 8 below), your rights with respect to the Development Area will automatically terminate.
-
- Franchise Premises and Franchise Territory. The Franchise Territory for each franchise will be designated by us before you open each relevant Franchise Premises. The Franchise Territory and your Franchise Premises must be in the United States of America, legally available pursuant to state and federal franchise and business opportunity disclosure and registration laws and pursuant to our contractual commitments (including those with our other franchisees) and in compliance with our franchise placement, market development and demographic criteria.
-
- No Other Understandings. Except as specifically outlined or forbidden in the relevant Franchise Agreement, there are no understandings oral or written concerning the future placement of restaurants by any party and concerning any territory protections granted to you.
-
- Franchise Opening Schedule.
Source: Item 23 — Receipts (FDD pages 50–189)
What This Means (2024 FDD)
According to the 2024 Afuri Ramen Dumpling Franchise Disclosure Document, the 'Development Schedule' outlines the timeframe within which a franchisee must commence full operation of their franchise. The schedule begins after the execution of the Multiple Franchise Purchase Addendum.
The FDD states that the failure to comply with the franchise opening and continuous operation requirements gives Afuri Ramen Dumpling the right to terminate any franchise agreements for franchises that have not yet opened for business. However, the FDD also notes that any failure to commence operation caused by events beyond the franchisee's reasonable control, such as war, civil disturbance, natural disaster, or labor disputes, will be excused for a period of time deemed reasonable by Afuri Ramen Dumpling.
Time is of the essence regarding the Development Schedule, meaning that the deadlines are strictly enforced. The Development Schedule supersedes any other opening or training deadlines outlined in the Franchise Agreements. If a franchisee fails to meet 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 not yet opened. However, Franchise Agreements and Territories for operating franchises will remain in force.