Where in the Afuri Ramen Dumpling Franchise Agreement can I find information about non-competition covenants?
Afuri_Ramen_Dumpling Franchise · 2024 FDDAnswer from 2024 FDD Document
| OBLIGATION | SECTION IN FRANCHISE AGREEMENT (“FA”) | DISCLOSURE DOCUMENT ITEM |
|---|---|---|
| t. Transfer | FA Section 7 | Item 17 |
| u. Renewal | FA Section 6.1 | Item 17 |
| v. Post-termination obligations | FA Sections 5.6, 5.7, 6.5, 6.6, 6.7, 9.9, 9.10 | Item 17 |
| w. Non-competition covenants | FA Sections 5.8, 5.9, 6.5, 6.6, 6.8, 9.9, 9.10 | Item 17 |
| x. Dispute resolution | FA Sections 9.7 & 9.8 | Item 17 |
Source: Item 11 — Franchisor's Assistance, Advertising, Computer Systems, and Training (FDD pages 27–34)
What This Means (2024 FDD)
According to Afuri Ramen Dumpling's 2024 Franchise Disclosure Document, details regarding non-competition covenants can be found in multiple sections of the Franchise Agreement. Specifically, Item 11 references Franchise Agreement Sections 5.8, 5.9, 6.5, 6.6, 6.8, 9.9, and 9.10 as the locations where these covenants are outlined. Additionally, Item 17 of the Disclosure Document also contains information pertaining to non-competition covenants.
For a prospective Afuri Ramen Dumpling franchisee, this means that the terms and conditions related to non-competition, which may restrict their ability to engage in similar businesses during and after the franchise agreement, are detailed in these sections. It is crucial to carefully review these sections to understand the scope and limitations of these covenants.
Understanding these non-competition clauses is essential for any potential franchisee to assess the long-term implications on their business activities. Franchisees should seek legal counsel to fully understand the restrictions and their potential impact. This is a standard practice in franchising, as franchisors typically include non-competition agreements to protect their brand and market position.