What is the nature of liability for an Afuri Ramen Dumpling franchisee and their owners, shareholders, members, or partners?
Afuri_Ramen_Dumpling Franchise · 2024 FDDAnswer from 2024 FDD Document
- 9.3.5. Joint and Several Liability. The liability of you and your owners, shareholders, members or partners will be both joint and several. A breach of this Agreement by you or by any shareholder, member or partner will be a breach by all of the shareholders, members or partners and also by you.
Source: Item 23 — Receipts (FDD pages 50–189)
What This Means (2024 FDD)
According to Afuri Ramen Dumpling's 2024 Franchise Disclosure Document, franchisees and their owners, shareholders, members, or partners have joint and several liability. This means that each individual or entity is liable for the entire debt or obligation.
In practical terms, if the Afuri Ramen Dumpling franchise breaches the agreement, the franchisor can pursue any or all of the owners, shareholders, members, or partners for the full amount of damages, regardless of their individual contribution to the breach. This also means that a breach of the agreement by any shareholder, member, or partner is considered a breach by all of them, as well as by the franchisee itself.
This type of liability is common in franchising to ensure the franchisor can effectively enforce the franchise agreement and protect the brand. Prospective Afuri Ramen Dumpling franchisees should understand the full implications of joint and several liability and consult with legal counsel to assess their risks before investing in the franchise.