What is the Afuri Ramen Dumpling franchisee's obligation regarding the use of materials?
Afuri_Ramen_Dumpling Franchise · 2024 FDDAnswer from 2024 FDD Document
. Except in connection with an Afuri franchise, you will never communicate, divulge, or use in any manner, either for your benefit or the benefit or any other person, persons, partnerships, associations, companies or corporations any Confidential Information or proprietary information, knowledge or know-how concerning the System or any information we have communicated to you in written, verbal or electronic form, including intranet passwords, for the operation of your business.
- 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.
- 4 RETURN OF CONFIDENTIAL INFORMATION. You agree that all originals and copies of records, data, reports, documents, lists, plans, drawings, correspondence, memoranda, notes, and other materials related to or containing any Confidential Information, in whatever form they exist, whether written, visual, audio, video, or other form of media, shall be our sole and exclusive property. Upon request by us, you will promptly return to us all documents or other tangible property that contains Confidential Information.
- 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 NON-COMPETITION COVENANT.
6.1 Covenant. During the term of your association with Franchisee and for two years thereafter, you will not directly or indirectly (including by or through any other person or entity) participate as an owner, director, officer, employee, consultant, licensor, licensee, distributor, or agent, or serve in any other capacity in any business engaged in the offer, sale, 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.
- 6.2 Geographic Scope. During the term of your association with Franchisee, the covenants described in Section 6.1 above shall apply worldwide.
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 restricted in how they can use confidential information and the Afuri Ramen Dumpling system. Specifically, franchisees can only use confidential information and the system as authorized by Afuri Ramen Dumpling. This obligation extends to the franchisee's owners, board of directors, employees, and agents, who must also adhere to the same restrictions. Any use of confidential information or the system by these parties requires Afuri Ramen Dumpling's prior written approval.
All records, data, reports, documents, lists, plans, drawings, correspondence, memoranda, notes, and other materials related to confidential information are the sole and exclusive property of Afuri Ramen Dumpling. Upon request, franchisees must promptly return all documents or tangible property containing confidential information to Afuri Ramen Dumpling. Franchisees also agree not to disclose or use Afuri Ramen Dumpling's recipes in any manner other than in connection with Afuri Ramen Dumpling franchises, as outlined in the Franchise Agreement.
Furthermore, franchisees acknowledge that they will receive valuable specialized and confidential information, including operational, sales, promotional, and marketing methods, operating procedures, processes, practices, lists of suppliers, customer lists, manuals, communications methods, accounting and reporting methods, custom software, and marketing strategies. Unless required by law or court order, franchisees must not copy, download, or divulge any confidential information to any person or enterprise outside of the Afuri Ramen Dumpling system. During and after the term of the Franchise Agreement, franchisees are prohibited from communicating, emailing, posting on the internet, or using confidential information in any manner, except for the benefit of their Afuri Ramen Dumpling franchise during the term of the agreement.