What is the duration of the license agreement between Afuri Ramen Dumpling and AFURI-JPN?

According to Afuri Ramen Dumpling's 2024 Franchise Disclosure Document, the company has a License Agreement with AFURI-JPN, dated March 29, 2018, that grants Afuri Ramen Dumpling the right to use and sublicense its trademarks to franchisees. This License Agreement is for 10-year renewable terms and can only be terminated for good cause. AFURI-JPN is Afuri Ramen Dumpling's parent company.

For a prospective franchisee, this agreement is important because it secures Afuri Ramen Dumpling's right to use its brand's trademarks, which are critical for operating a franchise. The agreement's 10-year renewable term provides a level of long-term stability, suggesting that Afuri Ramen Dumpling should be able to continue using and sublicensing the trademarks for the foreseeable future. The fact that the agreement can only be terminated for good cause further protects the franchisees, as it limits the circumstances under which the trademark rights could be revoked.

However, it is important to note that while the FDD states that Afuri Ramen Dumpling does not anticipate any issues with the use of the Afuri marks because AFURI-JPN is their parent company, prospective franchisees should still consider the potential risks associated with the license agreement. Although the agreement is renewable and can only be terminated for good cause, unforeseen circumstances could still arise that might affect Afuri Ramen Dumpling's ability to use the trademarks. It would be prudent for a potential franchisee to discuss these risks with Afuri Ramen Dumpling and to seek legal counsel to fully understand the implications of the License Agreement.