What must an Afuri Ramen Dumpling franchisee immediately cease doing upon termination of the agreement?
Afuri_Ramen_Dumpling Franchise · 2024 FDDAnswer from 2024 FDD Document
[NOTE: The following Section 2 is for franchise transfers but not for franchise renewals:]
- [2. Franchisee to Cease Using Trade Names, Marks, and Logos. Upon completion of the transfer, Franchisee will immediately cease using Franchisor's trade names, service marks, logos, and other marks, symbols or materials indicating that Franchisee is or was related to Franchisor in any way, except as otherwise provided in writing. Franchisee acknowledges that all such names, service marks, logos, and symbols are the exclusive property of Franchisor and that Franchisee has been allowed to use them, only in conjunction with the franchise relationship as outlined in this Agreement. Franchisee will remain jointly and severally bound to comply with the covenants in the Franchise Agreement which expressly or by reasonable implication are intended to apply to Franchisee after termination of the Franchise Agreement, including any applicable non-disclosure requirements. Franchisee will immediately:
- A. deliver to Transferee or Franchisor all copies of the Operations Manuals, training materials, and any other franchise-related materials in Franchisee's custody, control or possession (or destroy such materials if requested by Franchisor);
- B. take action as required to transfer to Transferee all registrations relating to the use of all assumed names;
- C. notify the telephone company and all listing agencies of the transfer of Franchisee's rights to use the franchise names and logos and classified and directory listings of the franchise;
- D. cease use of the franchise trademarks, service marks, trade names, copyrights, and other intellectual or intangible property; and
- E. refrain from doing business in any way that might tend to give the public the impression that Franchisee still is or was a franchisee in the franchise system;]
Source: Item 23 — Receipts (FDD pages 50–189)
What This Means (2024 FDD)
According to Afuri Ramen Dumpling's 2024 Franchise Disclosure Document, upon completion of a franchise transfer, a franchisee must immediately stop using Afuri Ramen Dumpling's trade names, service marks, logos, and other marks, symbols, or materials that suggest a relationship with Afuri Ramen Dumpling. The only exception to this is if Afuri Ramen Dumpling provides otherwise in writing.
This requirement is in place because all such names, service marks, logos, and symbols are the exclusive property of Afuri Ramen Dumpling. The franchisee's use of these items is only allowed in conjunction with the franchise relationship as outlined in the Franchise Agreement. The franchisee is still bound to comply with the covenants in the Franchise Agreement that expressly or implicitly apply after the termination of the Franchise Agreement, including any applicable non-disclosure requirements.
Specifically, the franchisee must deliver all copies of the Operations Manuals, training materials, and any other franchise-related materials to the transferee or Afuri Ramen Dumpling. If requested by Afuri Ramen Dumpling, the franchisee must destroy such materials. The franchisee must also take action to transfer all registrations relating to the use of all assumed names to the transferee, notify the telephone company and all listing agencies of the transfer of the franchisee's rights to use the franchise names and logos and classified and directory listings of the franchise, and cease use of the franchise trademarks, service marks, trade names, copyrights, and other intellectual or intangible property. Finally, the franchisee must refrain from doing business in any way that might tend to give the public the impression that the franchisee still is or was a franchisee in the franchise system.