Can an Afuri Ramen Dumpling franchisee sublease the franchise premises without consent?
Afuri_Ramen_Dumpling Franchise · 2024 FDDAnswer from 2024 FDD Document
THEREFORE, in consideration of the mutual promises and covenants contained in this Agreement, the parties agree as follows:
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- Use of Franchise Premises. Landlord acknowledges and agrees that the Franchise Premises may be used only for the operation of an Afuri facility. Landlord permits Tenant to use and display the following service marks, trademarks, and commercial logos: Afuri and all other marks that Franchisor has developed or develops in the future for an Afuri facility.
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- Landlord Reports and Disclosures to Franchisor. Tenant acknowledges and agrees that Landlord may, upon Franchisor's written request, disclose to Franchisor all reports, information, or data in Landlord's possession respecting sales made in, upon, or from the Franchise Premises and Tenant's business operations.
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- Assignment to Franchisor. Anything contained in the Lease Agreement to the contrary notwithstanding, Landlord agrees that without Landlord's consent, the Lease Agreement and Tenant's right, title and interest, may be assigned by Tenant to Franchisor, without cost or penalty. Landlord grants to Franchisor the right, at Franchisor's election, to receive an assignment of the Lease Agreement and the leasehold interest in the Franchise Premises, upon termination or expiration of Tenant's Franchise Agreement. This option may be exercised by Franchisor within 30 days of such termination or expiration.
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- Tenant's Default; Notice to Franchisor. Landlord will give written notice to Franchisor (concurrently with the giving of notice to Tenant) of any breach by Tenant under the Lease Agreement. Franchisor will have the right (but not obligation), in Franchisor's sole discretion, to cure any breach at Tenant's expense within 15 business days after the expiration of the period in which Tenant had to cure the default. Notice will be sent to the following address, or to the address Franchisor may, from time to time, specify in writing to Landlord:
AFURI FRANCHISE INC.
923 SE 7th Ave.
Portland, Oregon 97201
1 – Afuri Franchise Agreement: Exhibit 2
Source: Item 23 — Receipts (FDD pages 50–189)
What This Means (2024 FDD)
Based on the 2024 Afuri Ramen Dumpling Franchise Disclosure Document, the document does not explicitly state whether a franchisee can sublease the premises without consent. However, the lease agreement rider outlines specific conditions regarding the lease agreement between the landlord and the tenant (franchisee) and the franchisor's rights.
Specifically, the landlord must obtain the franchisor's prior written consent before extending, renewing, or canceling the lease agreement. Additionally, the landlord must provide written notice to the franchisor of any breach by the tenant under the lease agreement, giving the franchisor the right to cure the breach. The lease agreement can be assigned by the tenant to the franchisor without the landlord's consent.
Because the FDD does not directly address subleasing, it is important for a prospective Afuri Ramen Dumpling franchisee to ask the franchisor about the policy on subleasing the franchise premises. Understanding the franchisor's stance on subleasing, and the conditions under which it might be allowed, is crucial for making an informed decision about investing in the franchise.