What is the geographic scope of the non-competition covenant for Afuri Ramen Dumpling during the term of association with Franchisee?

According to Afuri Ramen Dumpling's 2024 Franchise Disclosure Document, during the term of association with the franchisee, the non-competition covenant described in section 6.1 applies worldwide. This means that while operating an Afuri Ramen Dumpling franchise, the franchisee is restricted from participating in or being associated with any business involved in offering or promoting ramen, other Japanese-style cuisine, Vietnamese pho, or any business offering products or services substantially similar to those of the Afuri Ramen Dumpling System anywhere in the world.

This worldwide restriction during the franchise term is a significant commitment for prospective franchisees. It prevents them from having any ownership, employment, or consulting role in competing businesses, regardless of location. This could limit a franchisee's ability to invest in or operate other restaurant concepts, even those located far from their Afuri Ramen Dumpling franchise.

After the term of association with the franchisee, the geographic scope of the non-competition covenant changes. For a period of two years after the association ends, the non-competition covenant applies within the Development Territory, within a 50-mile radius of the Development Territory, and within a 50-mile radius of any location or designated territory where Afuri Ramen Dumpling operates or has granted a franchise to operate an Afuri business. This post-term restriction is more localized compared to the worldwide restriction during the franchise term.