For Afuri Ramen Dumpling, what is the franchisee required to do regarding the sale of approved items and services?
Afuri_Ramen_Dumpling Franchise · 2024 FDDAnswer from 2024 FDD Document
You must fully honor all Gift Cards that are in the form we provide or approve, regardless of whether a Gift Card was issued by you or another Afuri location.
You must comply with our policies and procedures regarding requesting reimbursement for Gift Cards issued by other Afuri locations and for making timely payment to other Afuri locations, or a third-party service provider for Gift Cards issued from your franchise location that are honored by other Afuri locations.
- 1.7 Rights We Reserve.
We retain all rights not specifically granted to you under this Agreement.
We retain the right, in our sole discretion and without granting any right to you:
A. to use or license the use of the Marks or any other trademarks, service marks, logos or commercial symbols to anyone, and for any purpose, and at any location (except that we will not place an Afuri restaurant with your Franchise Territory).
B. to sell products or services anywhere, including within the Franchise Territory, using the Marks or different marks, through channels of distribution other than the Afuri restaurant franchise granted to you by this Agreement.
We will have no obligation to compensate you for any such sales made within your Franchise Territory.
For example, we may place Afuri establishments in airport and mall food courts, stadiums, and similar limited access environments in your Franchise Territory and regardless of the location of other Afuri operations.
We may place present and future Afuri products for sale in grocery stores and food markets at any location, whether or not within the Franchise Territory or within close proximity to an Afuri franchise.
Other distribution methods may also include internet sales, telephone sales, catalogue sales, sales via online marketplaces (such as Goldbelly.com, for example), and sales by other means.
- C. to reserve the exclusive right to use the Internet to promote the Marks and to offer and sell Afuri-related products and services.
You may not independently market on the Internet, conduct e-commerce, or make sales via online marketplaces except as otherwise allowed by us in the Operations Manual.
- 1.8 Pricing.
We will be permitted, to the extent permitted by relevant law, to establish price ceilings or minimum or maximum allowable prices on the products and services you offer and sell.
You may be required go through us to update menu pricing on our end as we will maintain control over the menu and related customer-facing information via our custom or proprietary software.
Source: Item 23 — Receipts (FDD pages 50–189)
What This Means (2024 FDD)
According to the 2024 Afuri Ramen Dumpling Franchise Disclosure Document, franchisees must honor all gift cards in the form that Afuri Ramen Dumpling provides or approves, regardless of which Afuri Ramen Dumpling location issued the gift card. Franchisees must also comply with Afuri Ramen Dumpling's policies and procedures for requesting reimbursement for gift cards issued by other Afuri Ramen Dumpling locations. They must also make timely payments to other Afuri Ramen Dumpling locations, or a third-party service provider, for gift cards issued from their franchise location that are honored by other Afuri Ramen Dumpling locations.
Afuri Ramen Dumpling retains certain rights regarding the sale of products and services. They can sell products or services anywhere, including within the franchisee's territory, using the Afuri Ramen Dumpling marks or different marks, through distribution channels other than the Afuri Ramen Dumpling restaurant franchise granted to the franchisee. Afuri Ramen Dumpling may place Afuri Ramen Dumpling establishments in locations such as airport and mall food courts, stadiums, and similar limited access environments, even within the franchisee's territory. They can also place Afuri Ramen Dumpling products for sale in grocery stores and food markets at any location, whether within the Franchise Territory or in close proximity to an Afuri Ramen Dumpling franchise. Other distribution methods may include internet sales, telephone sales, catalogue sales, sales via online marketplaces, and sales by other means.
Afuri Ramen Dumpling also reserves the exclusive right to use the Internet to promote the marks and to offer and sell Afuri Ramen Dumpling-related products and services. Franchisees are restricted from independently marketing on the Internet, conducting e-commerce, or making sales via online marketplaces, unless specifically allowed by Afuri Ramen Dumpling in the Operations Manual. Afuri Ramen Dumpling is permitted to establish price ceilings or minimum or maximum allowable prices on the products and services franchisees offer and sell, to the extent permitted by relevant law. Franchisees may be required to go through Afuri Ramen Dumpling to update menu pricing, as Afuri Ramen Dumpling maintains control over the menu and related customer-facing information via their custom or proprietary software.
These stipulations mean that while franchisees operate their individual Afuri Ramen Dumpling restaurants, the franchisor maintains significant control over pricing, marketing, and distribution channels, including online sales and alternative locations within the franchisee's territory. This could impact a franchisee's potential revenue and requires them to adhere strictly to the franchisor's policies and pricing guidelines. Prospective franchisees should carefully consider these restrictions and understand how they might affect their business operations and profitability.