How must an Afuri Ramen Dumpling franchisee operate the franchise?
Afuri_Ramen_Dumpling Franchise · 2024 FDDAnswer from 2024 FDD Document
dential and must not make any of the Afuri Data available to any unauthorized person without our prior written consent of and then only in the manner we permit.
5.7 Conflicting or Competing Interests.
- 5.7.1 You will diligently, faithfully, and honestly perform your obligations pursuant to this Agreement. You will use your best efforts to develop, promote, and enhance your franchise. You will not engage in any activity or business enterprise that conflicts with these obligations.
- 5.7.2 At all times the Franchise must be under your direct supervision. You will devote a substantial enough amount of time and energy to properly operate the Franchise. In your absence, the Franchise must be under the direct supervision of a manager who has successfully completed the required training programs and who devotes the necessary time during business hours to the management of the Franchise.
- 5.7.2 In express consideration for and during the term of this Agreement, neither you nor your owners, shareholders, members, partners, directors, officers, employees, consultants, distributors, or agents, nor the members of your or their immediate families or households (who have access to or knowledge of the Operations Manual or System), will directly or indirectly participate as an owner, shareholder, member, partner, director, officer, employee, consultant, franchisor, franchisee, distributor, advisor or agent, or serve in any other capacity in any business (including business in formation) directly or indirectly engaged or to be engaged in the offer, sale, 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. We may waive this covenant only in writing. 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).
- 5.7.3 You will assure that you and your owners, directors, officers, partners, shareholders, members, employees, consultants, and agents, during the term of this Agreement and for a period of two years after expiration or termination of this Agreement do not:
- A. divert or directly or indirectly attempt to divert any of our business or any of our customers to any competing establishment; or
- B. do or perform, directly or indirectly, any other act injurious or prejudicial to our goodwill associated with the Marks and System.
- 5.7.4 If, for any reason, any provision set forth in this Section is determined to exceed any lawful scope or limit as to duration, geographic coverage, or otherwise, it is agreed that the provision will nevertheless be binding to the full scope or limit allowed by law or by a court of law. The duration, geographic coverage and scope allowable by law or court of law shall apply to this Agreement.
Source: Item 23 — Receipts (FDD pages 50–189)
What This Means (2024 FDD)
According to the 2024 Afuri Ramen Dumpling Franchise Disclosure Document, franchisees are expected to diligently, faithfully, and honestly perform their obligations under the Franchise Agreement and use their best efforts to develop, promote, and enhance their franchise. Franchisees must devote a substantial amount of time and energy to properly operate the franchise. If the franchisee is absent, a trained manager must directly supervise the franchise during business hours.
Afuri Ramen Dumpling franchisees must not engage in any activity or business that conflicts with their obligations as a franchisee. During the term of the agreement, franchisees (including their owners, shareholders, members, partners, directors, officers, employees, consultants, distributors, or agents, and their immediate families or households with access to the Operations Manual or System) are restricted from participating in businesses involved in the offer, sale, internet dissemination, or promotion of ramen, other Japanese-style cuisine, Vietnamese pho, or any business offering products or services substantially similar to those in the Afuri Ramen Dumpling System. This restriction may be waived in writing by Afuri Ramen Dumpling, and certain exceptions may apply to pre-existing businesses.
Furthermore, during the term of the agreement and for two years after its expiration or termination, franchisees must not divert or attempt to divert any of Afuri Ramen Dumpling's business or customers to a competing establishment, or perform any act injurious or prejudicial to the goodwill associated with the Afuri Ramen Dumpling Marks and System. If any provision regarding these restrictions is deemed too broad, it will be interpreted to the full extent allowed by law. Afuri Ramen Dumpling also reserves the right to disclose financial performance information regarding the franchisee's operations in their franchise disclosure documents and elsewhere, with the franchisee's consent to such disclosure.