Does the FDD specify any exceptions to the requirement that the franchisee supervise the Afuri Ramen Dumpling franchise?

According to Afuri Ramen Dumpling's 2024 Franchise Disclosure Document, the agreement allows for exceptions to non-competition covenants under specific conditions. If a franchisee operates a pre-existing business that offers similar food items, exceptions to the non-compete agreement may apply. These exceptions are detailed in the Pre-Existing Business Addendum, which is Exhibit 4 of the Franchise Agreement.

This means that if a prospective Afuri Ramen Dumpling franchisee already owns a restaurant with a similar menu, they may be able to continue operating that business alongside the new Afuri Ramen Dumpling franchise. However, this is contingent on the terms outlined in the Pre-Existing Business Addendum, which would specify the extent to which the franchisee can continue to operate the existing business without violating the non-compete provisions of the Afuri Ramen Dumpling franchise agreement.

It is important for potential franchisees to carefully review Exhibit 4 and discuss any pre-existing businesses with Afuri Ramen Dumpling to determine the specific terms and conditions that would apply. This ensures clarity and avoids potential conflicts related to the non-competition covenants after the franchise agreement is terminated, expires, or is transferred. The non-compete agreement typically lasts for two years and covers a wide geographical area, including the franchise territory, a 50-mile radius around it, and any area where Afuri Ramen Dumpling operates or has granted a franchise.