Where might Afuri Ramen Dumpling place Afuri establishments within a franchisee's territory?
Afuri_Ramen_Dumpling Franchise · 2024 FDDAnswer from 2024 FDD Document
We retain all rights not specifically granted to you under this Agreement.
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.
Source: Item 23 — Receipts (FDD pages 50–189)
What This Means (2024 FDD)
According to Afuri Ramen Dumpling's 2024 Franchise Disclosure Document, while the franchisor generally avoids placing an Afuri restaurant within a franchisee's territory, they retain specific rights to do so in certain locations. Afuri Ramen Dumpling may place establishments in locations such as airport and mall food courts, stadiums, and similar limited access environments, regardless of other Afuri operations.
Additionally, Afuri Ramen Dumpling reserves the right to sell products or services anywhere, including within the franchisee's territory, through different distribution channels using the Afuri marks or different marks. These other distribution methods may include internet sales, telephone sales, catalogue sales, and sales via online marketplaces. The franchisor has no obligation to compensate the franchisee for any such sales made within the franchisee's territory.
This policy has significant implications for prospective franchisees. While franchisees are granted a territory, Afuri Ramen Dumpling retains considerable freedom to operate within that territory through alternative channels and specific venues. This could lead to direct competition within a franchisee's area, potentially impacting their revenue. Prospective franchisees should carefully consider these potential competitive overlaps and evaluate their business plan accordingly. It is important to note that Afuri Ramen Dumpling also reserves the exclusive right to use the Internet to promote the Marks and to offer and sell Afuri-related products and services.