What location information must the franchisee of Afuri Ramen Dumpling disclose about their pre-existing business?
Afuri_Ramen_Dumpling Franchise · 2024 FDDAnswer from 2024 FDD Document
ng 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
Source: Item 23 — Receipts (FDD pages 50–189)
What This Means (2024 FDD)
According to Afuri Ramen Dumpling's 2024 Franchise Disclosure Document, a franchisee (or their owners or affiliated entities) may continue to operate pre-existing businesses, notwithstanding the non-competition covenants in the Franchise Agreement. However, the confidentiality and nondisclosure covenants of the Franchise Agreement are not affected by this allowance and remain in full force and effect.
The franchisee must specify whether the pre-existing business will be operated only at the locations indicated, or including any new or additional locations under the same brand name(s) and offering the same goods and services as the pre-existing businesses. This disclosure is crucial for Afuri Ramen Dumpling to assess potential conflicts of interest and ensure that the franchisee's other business activities do not negatively impact the Afuri Ramen Dumpling brand.
This requirement ensures transparency and allows Afuri Ramen Dumpling to make informed decisions about granting a franchise to an individual with existing business interests. It also protects Afuri Ramen Dumpling's market position by clarifying the scope of the franchisee's non-compete obligations. Prospective franchisees should carefully consider this requirement and ensure they can provide accurate and complete information about their pre-existing businesses.