exception

What kind of events will excuse a delay in opening an Afuri Ramen Dumpling franchise?

Afuri_Ramen_Dumpling Franchise · 2024 FDD

Answer from 2024 FDD Document

Any failure caused by a war or civil disturbance, a natural disaster, a labor dispute, shortages or other events beyond your reasonable control will be excused for a time that is reasonable under the circumstances. If we and you cannot agree on a site within the prescribed deadline, then we will have the right to terminate your Franchise Agreement. We will exercise this discretion in a reasonable manner and in good faith.

Source: Item 11 — Franchisor's Assistance, Advertising, Computer Systems, and Training (FDD pages 27–34)

What This Means (2024 FDD)

According to Afuri Ramen Dumpling's 2024 Franchise Disclosure Document, a franchisee's failure to open on time will be excused if the delay is caused by events beyond their reasonable control. These events include war, civil disturbances, natural disasters, labor disputes, or shortages. The delay will be excused for a time that is considered reasonable under the specific circumstances.

This means that if an Afuri Ramen Dumpling franchisee faces significant obstacles outside of their control, such as a hurricane damaging the construction site or widespread strikes delaying equipment delivery, they may be granted additional time to open their franchise without penalty. However, the FDD stipulates that the length of the excusable delay must be reasonable, implying that excessively long delays may not be fully excused.

It's important to note that if the franchisee and Afuri Ramen Dumpling cannot agree on a site within the agreed-upon timeframe, Afuri Ramen Dumpling has the right to terminate the Franchise Agreement. However, the document states that Afuri Ramen Dumpling will exercise this right reasonably and in good faith. This clause protects both the franchisee and franchisor, ensuring neither party is unfairly penalized by circumstances outside their control while also setting a limit on how long a delay can be.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.