factual

For Afuri Ramen Dumpling, what must the franchisee do regarding approved items and services?

Afuri_Ramen_Dumpling Franchise · 2024 FDD

Answer from 2024 FDD Document

  • 3 COVENANT OF NON-USE.

You agree not to use Confidential Information or the System, except as authorized by us.

You will obligate your owners, board of directors, your employees, and your agents to the same non-use covenant.

We must approve in writing any use of Confidential Information or System by you or your owners or your directors or employees.

  • 5 RECIPES.

Without limiting the generality of the non-disclosure and non-use provisions in this Agreement, you specifically agree not to disclose or use our recipes (by yourself or by or through any other entity or individual) in any manner other than in connection with Afuri franchises pursuant to the Franchise Agreement.

  • 6.5.7 Upon termination for any reason, you will return to us all proprietary and confidential materials, including customer lists and account information, keys, codes, signage, advertising and marketing materials, service agreements and other forms, printed files, security codes, and additional similar items and information as may be described in the Operations Manual. If you fail to return or cease use of any of these items, we may enter your business premises without being guilty of trespass or any other tort to remove and retain the items. You will pay to us, on demand, any expenses we incur in trying to remove or collect such items or in attempting to have you cease use of them.

Source: Item 23 — Receipts (FDD pages 50–189)

What This Means (2024 FDD)

According to the 2024 Afuri Ramen Dumpling FDD, franchisees are restricted in their use of confidential information and the Afuri Ramen Dumpling system. Specifically, franchisees must obtain written approval from Afuri Ramen Dumpling for any use of confidential information or the system by the franchisee, their owners, directors, or employees. This requirement ensures that the franchisee operates strictly within the approved guidelines and standards set by Afuri Ramen Dumpling.

Furthermore, the franchisee is obligated to protect Afuri Ramen Dumpling's recipes. The franchisee must not disclose or use the recipes in any manner other than in connection with Afuri Ramen Dumpling franchises, as outlined in the Franchise Agreement. This restriction is crucial for maintaining the uniqueness and quality of Afuri Ramen Dumpling's offerings, preventing unauthorized use of proprietary recipes.

Upon termination of the franchise agreement, the franchisee must return all proprietary and confidential materials to Afuri Ramen Dumpling. These materials include customer lists, account information, keys, codes, signage, advertising and marketing materials, service agreements, and other forms, whether in printed files or security codes. If the franchisee fails to return or cease using these items, Afuri Ramen Dumpling has the right to enter the business premises to remove and retain them, and the franchisee will be responsible for any expenses incurred by Afuri Ramen Dumpling in the process of retrieving these items or ensuring their discontinued use.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.