What is the franchisee acknowledging regarding the protection and preservation of the goodwill of the Marks and the confidentiality and value of the System for the Afuri Ramen Dumpling franchise?
Afuri_Ramen_Dumpling Franchise · 2024 FDDAnswer from 2024 FDD Document
- 7 NON-DIVERSION OF BUSINESS. During the term of your association with Franchisee and for two years thereafter, you will not:
- A. divert or attempt to divert any of our business or any of our customers to any competing establishment; or
- B. do anything harmful to our goodwill associated with the Marks and System.
- 8 REMEDIES: INJUNCTION AND DAMAGES. You acknowledge that any disclosure of Confidential Information will cause irreparable harm to us. You agree that it may be difficult to measure damage to us from any breach by you or your employees and agents of this Agreement. You agree that monetary damages may be an inadequate remedy for any such breach. Accordingly, you agree that if you breach or take steps preliminary to breaching this Agreement, we shall be entitled, in addition to all other remedies we may have at law or in equity, to a restraining order, temporary and permanent injunctive relief, specific performance, or other appropriate equitable relief, without showing or proving that we actual sustained any damage.
9 MISCELLANEOUS
- 9.1 Duration.
The obligations set forth in this Agreement related to non-disclosure and nonuse of Confidential Information will continue during and beyond the term of your relationship with the Franchisee and for as long as you possess any Confidential Information in any manner.
Source: Item 23 — Receipts (FDD pages 50–189)
What This Means (2024 FDD)
According to the 2024 Afuri Ramen Dumpling Franchise Disclosure Document, franchisees acknowledge the importance of protecting the goodwill associated with the brand's Marks and System. Specifically, franchisees agree not to take any actions that could harm the goodwill connected to Afuri Ramen Dumpling's trademarks and operational system. This includes refraining from diverting business or customers to competing establishments.
Furthermore, the franchisee acknowledges that disclosing confidential information would cause irreparable harm to Afuri Ramen Dumpling. Due to the difficulty in measuring the exact monetary damage resulting from a breach of confidentiality, Afuri Ramen Dumpling is entitled to seek injunctive relief, including restraining orders and specific performance, in addition to any other legal or equitable remedies available. This means Afuri Ramen Dumpling can take immediate legal action to prevent further disclosure or misuse of confidential information, even without proving specific financial losses.
The obligations regarding non-disclosure and non-use of confidential information extend both during the term of the franchise agreement and indefinitely after its expiration or termination, as long as the franchisee possesses any confidential information. This highlights the enduring responsibility of the franchisee to safeguard Afuri Ramen Dumpling's proprietary information and protect the brand's competitive advantage.