Does the non-competition covenant for Afuri Ramen Dumpling apply worldwide during the term of the franchise?

According to Afuri Ramen Dumpling's 2024 Franchise Disclosure Document, the non-competition covenant during the term of the franchise agreement applies worldwide. This means that while operating an Afuri Ramen Dumpling franchise, the franchisee and their associated parties are restricted from participating in any competitive business globally. This covenant extends to owners, directors, officers, employees, consultants, and agents, preventing them from engaging in businesses that offer ramen, other Japanese-style cuisine, Vietnamese pho, or any substantially similar products or services.

After the franchise term ends, the geographic scope of the non-competition covenant changes. For a period of two years post-termination, expiration, or transfer of the agreement, the restrictions apply within the Development Territory, within a 50-mile radius of the Development Territory, and within a 50-mile radius of any location where Afuri Ramen Dumpling operates or has granted a franchise. This post-term restriction is more limited geographically compared to the worldwide restriction in place during the franchise term.

This non-competition agreement also includes a covenant of non-use, which prevents franchisees from using confidential information or the Afuri Ramen Dumpling system in any unauthorized manner. This obligation extends to the franchisee's owners, board of directors, employees, and agents. The FDD emphasizes that any unauthorized disclosure of confidential information will cause irreparable harm to Afuri Ramen Dumpling, entitling them to injunctive relief and other remedies.