What goods and services must the franchisee of Afuri Ramen Dumpling disclose about their pre-existing business?
Afuri_Ramen_Dumpling Franchise · 2024 FDDAnswer from 2024 FDD Document
ing and effective.
- 1.6 There are no existing restrictive covenants, other than those which the Pre-Existing Business has waived, binding on Franchisee or any of its partners, owners, agents, representatives or employees that would be breached by the acquisition and operation of the obligations of Franchisee to Franchisor in the Franchise Agreement and related agreements.
- 1 Afuri Franchise Agreement: Exhibit 4 2. Exceptions to In-Term and Post-Term Non-Competition Covenants. Franchisee (or its owners or affiliated entities) may continue to operate the Pre-Existing Business(es) [Alternative #1: only
*at the locations indicated above][ Alternative #2: including any new or additional locations under the same brand name(s) and offering the same goods and services as the Pre-Existing
Source: Item 23 — Receipts (FDD pages 50–189)
What This Means (2024 FDD)
According to the 2024 Afuri Ramen Dumpling Franchise Disclosure Document, franchisees (or their owners/affiliated entities) may continue to operate pre-existing businesses, notwithstanding the non-competition covenants within the franchise agreement. The franchisee must disclose the goods and services offered by the pre-existing business. This exception applies under two alternative conditions.
Alternative #1 allows the franchisee to continue operating the pre-existing business only at the locations already indicated. Alternative #2 broadens this scope, allowing operation at existing locations and any new or additional locations under the same brand name(s). Under this alternative, the franchisee can continue offering the same goods and services as the pre-existing business.
However, it's important to note that regardless of which alternative applies, the confidentiality and nondisclosure covenants of the Afuri Ramen Dumpling Franchise Agreement remain in full effect. This means that while a franchisee may continue operating a pre-existing business, they must still uphold the confidentiality terms outlined in the agreement with Afuri Ramen Dumpling.