What is the duration of the Afuri Ramen Dumpling non-compete agreement?
Afuri_Ramen_Dumpling Franchise · 2024 FDDAnswer from 2024 FDD Document
6.7 You and Your Owners Not to Compete on Expiration, Termination or Transfer of Agreement.
- 6.7.1 Post-Termination Non-Compete.
This covenant will apply for two years after termination, expiration or transfer of this Agreement.
In express consideration for this Agreement, you will assure that you and your owners, shareholders, partners, directors, officers, employees, and agents, and the members of their immediate families or households (who have actual knowledge of or access to the Operations Manual or System), will not directly or indirectly participate as an owner, shareholder, director, partner, officer, employee, consultant, franchisor, franchisee, distributor, advisor or agent, or serve in any other capacity in any business engaged directly or indirectly in the offer, sale, rental, internet dissemination, or promotion of: (1) ramen, (2) other Japanese style cuisine, (3) Vietnamese pho, or (4) any business that offers products or services that are essentially the same as, or substantially similar to, the products and services that are part of the System.
This covenant applies within the Franchise Territory, within a 50-mile radius of the Franchise Territory, within a 50-mile radius of any location or franchise territory where we operate or have granted the franchise to operate an Afuri business, and within the United States of America.
Certain exceptions may apply if you operate one or more existing restaurants that offer similar food items as provided in the Pre-Existing Business Addendum to this Agreement (Exhibit 4).
Source: Item 23 — Receipts (FDD pages 50–189)
What This Means (2024 FDD)
According to the 2024 Afuri Ramen Dumpling Franchise Disclosure Document, the non-compete agreement lasts for two years after the termination, expiration, or transfer of the Franchise Agreement. This means that for a period of two years after a franchisee's association with Afuri Ramen Dumpling ends, they (and their owners, shareholders, partners, directors, officers, employees, and agents, and the members of their immediate families or households who have access to the Operations Manual or System) are restricted from engaging in any competitive business.
The non-compete clause prevents the franchisee from participating directly or indirectly in any business involved in offering or selling ramen, other Japanese-style cuisine, Vietnamese pho, or any business offering products or services substantially similar to those of the Afuri Ramen Dumpling System. This restriction applies not only within the franchisee's territory but also within a 50-mile radius of that territory, a 50-mile radius of any location where Afuri Ramen Dumpling operates or has granted a franchise, and throughout the United States.
This non-compete agreement is designed to protect Afuri Ramen Dumpling's business model, trade secrets, and market position by preventing former franchisees from using the knowledge and experience gained during their franchise term to compete against the brand. However, certain exceptions may apply if the franchisee operates existing restaurants that offer similar food items, as detailed in the Pre-Existing Business Addendum to the Franchise Agreement. Prospective franchisees should carefully review this addendum to understand if any exceptions apply to their specific circumstances.