Can Afuri Ramen Dumpling operate under the Marks themselves, or grant licenses to others?
Afuri_Ramen_Dumpling Franchise · 2024 FDDAnswer from 2024 FDD Document
We retain the right, in our sole discretion and without granting any right to you:
A. to use or license the use of the Marks or any other trademarks, service marks, logos or commercial symbols to anyone, and for any purpose, and at any location (except that we will not place an Afuri restaurant with your Franchise Territory).
B. to sell products or services anywhere, including within the Franchise Territory, using the Marks or different marks, through channels of distribution other than the Afuri restaurant franchise granted to you by this Agreement.
We will have no obligation to compensate you for any such sales made within your Franchise Territory.
For example, we may place Afuri establishments in airport and mall food courts, stadiums, and similar limited access environments in your Franchise Territory and regardless of the location of other Afuri operations.
We may place present and future Afuri products for sale in grocery stores and food markets at any location, whether or not within the Franchise Territory or within close proximity to an Afuri franchise.
Other distribution methods may also include internet sales, telephone sales, catalogue sales, sales via online marketplaces (such as Goldbelly.com, for example), and sales by other means.
- C. to reserve the exclusive right to use the Internet to promote the Marks and to offer and sell Afuri-related products and services.
You may not independently market on the Internet, conduct e-commerce, or make sales via online marketplaces except as otherwise allowed by us in the Operations Manual.
Source: Item 23 — Receipts (FDD pages 50–189)
What This Means (2024 FDD)
According to the 2024 Afuri Ramen Dumpling FDD, Afuri Franchise, Inc. retains specific rights regarding the use of its trademarks and service marks. Afuri Ramen Dumpling explicitly reserves the right to use or license its Marks to anyone, for any purpose, and at any location. However, they will not place an Afuri restaurant within a franchisee's exclusive territory. This means that while Afuri Ramen Dumpling franchisees are granted the right to operate under the Afuri Ramen + Dumpling brand, the franchisor maintains control over the Marks and can license them to other parties, except for directly competing restaurants within the franchisee's territory.
This reservation of rights extends to various channels of distribution. Afuri Ramen Dumpling can sell products or services anywhere, including within a franchisee's territory, using the Marks or different marks, through channels other than the Afuri restaurant franchise granted to the franchisee. These alternative distribution methods may include placing Afuri establishments in locations like airport and mall food courts, stadiums, grocery stores, food markets, internet sales, telephone sales, catalogue sales, and online marketplaces. The franchisee will not be entitled to compensation for any sales made through these other channels within their territory.
Furthermore, Afuri Ramen Dumpling reserves the exclusive right to use the Internet to promote the Marks and offer Afuri-related products and services. Franchisees are restricted from independently marketing on the Internet, conducting e-commerce, or making sales via online marketplaces unless specifically allowed by Afuri Ramen Dumpling in the Operations Manual. This indicates that Afuri Ramen Dumpling maintains control over the brand's online presence and sales channels, limiting the franchisee's ability to independently leverage the Internet for marketing and sales purposes.
In summary, while Afuri Ramen Dumpling grants franchisees the right to operate a restaurant using its Marks and System within a defined territory, the franchisor retains significant control over the Marks and can utilize them through other channels and license them to other parties outside of direct restaurant competition within the franchisee's territory. This is a common practice in franchising, allowing the franchisor to expand brand presence and revenue streams through diverse avenues while maintaining brand consistency and control.