What is the name of the addendum that applies to franchisees of Afuri Ramen Dumpling who own pre-existing businesses?
Afuri_Ramen_Dumpling Franchise · 2024 FDDAnswer from 2024 FDD Document
Certain exceptions may apply if you operate one or more existing restaurants that offer similar food items as provided in the Pre-Existing Business Addendum to this Agreement (Exhibit 4).
Source: Item 23 — Receipts (FDD pages 50–189)
What This Means (2024 FDD)
According to the 2024 Afuri Ramen Dumpling Franchise Disclosure Document, the addendum that applies to franchisees who own pre-existing businesses is called the "Pre-Existing Business Addendum". This addendum is referenced in the context of exceptions to non-competition covenants within the franchise agreement.
Specifically, the addendum allows franchisees (or their owners or affiliated entities) to continue operating their pre-existing businesses, despite the in-term and post-term non-competition clauses typically included in the Franchise Agreement. This waiver is detailed in Sections 5.7.2 and 6.7 of the Franchise Agreement, but it's important to note that the confidentiality and nondisclosure covenants of the Franchise Agreement remain fully in effect, even with the addendum.
However, Afuri Ramen Dumpling franchisees should be aware that this exception is not unlimited. Franchisees are not allowed to establish new businesses or participate in other activities that would violate the non-competition covenants, except as expressly permitted by the Pre-Existing Business Addendum. Furthermore, the franchisee is required to indemnify Afuri Ramen Dumpling against any losses, costs, or liabilities arising from breaches of representations and warranties within the addendum, the operation of the pre-existing business, or any negligent acts related to the pre-existing business. This indemnification extends beyond the termination of the Franchise Agreement.