What is the obligation of the franchisee regarding compliance with contractual commitments for Afuri Ramen Dumpling?
Afuri_Ramen_Dumpling Franchise · 2024 FDDAnswer from 2024 FDD Document
5.6 You Will Not Communicate or Use Confidential Information.
5.6.1 You specifically acknowledge that you will receive valuable specialized and Confidential Information, including information regarding our operational, sales, promotional and marketing methods and techniques, operating procedures, processes, practices, lists of suppliers, customer lists, manuals, communications methods, accounting and reporting methods, use of custom or proprietary software, marketing and sales techniques and strategies (collectively referred to as "Confidential Information" or "Proprietary Information" in this Agreement), and the System. Unless required by court order or applicable law, you agree not to copy, download to internet, intranet, modem, fax, e-mail, mail or send any Confidential Information or divulge any Confidential Information directly or indirectly to any other person or enterprise outside of the Afuri system.
5.6.2 During the term of this Agreement and forever after it expires or is terminated, you will never:
- A. communicate, fax, e-mail, post on an internet electronic bulletin board, or
B. divulge or use in any other manner (either for your benefit or the benefit or any other person, persons, partnerships, associations, companies or corporations, except for the benefit of your Afuri franchise during the term of this Agreement)
3 COVENANT OF NON-USE.
You agree not to use Confidential Information or the System, except as authorized by us.
You will obligate your owners, board of directors, your employees, and your agents to the same non-use covenant.
We must approve in writing any use of Confidential Information or System by you or your owners or your directors or employees.
- 4 RETURN OF CONFIDENTIAL INFORMATION.
You agree that all originals and copies of records, data, reports, documents, lists, plans, drawings, correspondence, memoranda, notes, and other materials related to or containing any Confidential Information, in whatever form they exist, whether written, visual, audio, video, or other form of media, shall be our sole and exclusive property.
Upon request by us, you will promptly return to us all documents or other tangible property that contains Confidential Information.
- 5 RECIPES.
Without limiting the generality of the non-disclosure and non-use provisions in this Agreement, you specifically agree not to disclose or use our recipes (by yourself or by or through any other entity or individual) in any manner other than in connection with Afuri franchises pursuant to the Franchise Agreement.
6 NON-COMPETITION COVENANT.
6.1 Covenant. During the term of your association with Franchisee and for two years thereafter, you will not directly or indirectly (including by or through any other person or entity) participate as an owner, director, officer, employee, consultant, licensor, licensee, distributor, or agent, or serve in any other capacity in any business engaged in the offer, sale, or promotion of: (1) ramen, (2) other Japanese style cuisine, (3) Vietnamese pho, or (4)
Source: Item 23 — Receipts (FDD pages 50–189)
What This Means (2024 FDD)
According to the 2024 Afuri Ramen Dumpling Franchise Disclosure Document, as a franchisee, you are required to protect the confidentiality of Afuri Ramen Dumpling's proprietary information and adhere to the standards set by the company. Specifically, franchisees receive specialized and confidential information regarding operational, sales, promotional, and marketing methods, operating procedures, processes, supplier lists, customer lists, manuals, communication methods, accounting and reporting methods, software, and sales techniques. Franchisees must not copy, download, or share this confidential information with anyone outside the Afuri Ramen Dumpling system, unless required by law or court order.
This obligation extends both during the term of the Franchise Agreement and indefinitely after its expiration or termination. Franchisees are prohibited from communicating, emailing, posting online, or divulging confidential information for their own benefit or the benefit of others, except for the operation of their Afuri Ramen Dumpling franchise during the agreement term. Franchisees must also ensure that their owners, board of directors, employees, and agents comply with the same non-use covenant. Any use of confidential information or the system must be approved in writing by Afuri Ramen Dumpling.
Upon request, franchisees must promptly return all documents and tangible property containing confidential information to Afuri Ramen Dumpling. Franchisees are specifically prohibited from disclosing or using Afuri Ramen Dumpling's recipes in any manner other than in connection with their Afuri Ramen Dumpling franchise. Additionally, during the term of the franchise and for two years afterward, franchisees are restricted from participating in any business that offers ramen, other Japanese-style cuisine, or Vietnamese pho, either directly or indirectly, as an owner, director, officer, employee, consultant, or agent.