What happens if an Afuri Ramen Dumpling franchisee is absent or incapacitated?
Afuri_Ramen_Dumpling Franchise · 2024 FDDAnswer from 2024 FDD Document
- 6.8 Interim Management.
To protect the System, the Marks, the Confidential Information, and the goodwill associated with the same, Franchisor may (but is not obligated to) assume interim management of the Franchise for any of the following reasons: (a) after Franchisor has given Franchisee written notice that Franchisee is in default under this Agreement and during the pendency of any cure period or in lieu of immediately terminating this Agreement; (b) you are absent or incapacitated because of illness or death; (c) your business activities are having, or are likely to have, a negative impact upon the value of our Marks, goodwill, or the franchise system (as we determine at our sole discretion); (d) we determine that significant operational problems require us to temporarily operate the Franchise; or (e) while your Franchise is not being managed by a competent and trained manager after your Death or Disability (as defined in Section 7.3 below).
If Franchisor elects to assume interim management of the Franchise, then: (i) Franchisor's election will not relieve Franchisee of Franchisee's obligations under this Agreement; (ii) Franchisor will not be liable for any debts, losses, costs or expenses incurred in the operation of the Franchise during any interim management period; (iii) Franchisor will have the right to
Source: Item 23 — Receipts (FDD pages 50–189)
What This Means (2024 FDD)
According to Afuri Ramen Dumpling's 2024 Franchise Disclosure Document, if a franchisee is absent or incapacitated due to illness or death, Afuri Franchise, Inc. has the option, but not the obligation, to assume interim management of the franchise. This is to protect the Afuri Ramen Dumpling System, Marks, Confidential Information, and associated goodwill.
If Afuri Ramen Dumpling elects to assume interim management, the franchisee remains responsible for their obligations under the Franchise Agreement. Afuri Ramen Dumpling will not be liable for any debts, losses, costs, or expenses incurred during the interim management period.
This clause ensures that even in the event of a franchisee's absence or incapacitation, Afuri Ramen Dumpling can maintain operational standards and protect its brand. However, the franchisee (or their estate) will continue to be responsible for financial obligations, even without being able to manage the business directly. This arrangement could create financial strain for the franchisee or their family during a difficult time.