Where will Afuri Ramen Dumpling products be shipped?
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.
Source: Item 23 — Receipts (FDD pages 50–189)
What This Means (2024 FDD)
According to Afuri Ramen Dumpling's 2024 Franchise Disclosure Document, Afuri Franchise, Inc. retains specific rights regarding the sale and distribution of its products. Specifically, Afuri Ramen Dumpling retains the right to sell products or services anywhere, including within a franchisee's territory, using the Afuri Ramen Dumpling marks or different marks, through distribution channels other than the Afuri Ramen Dumpling restaurant franchise granted to the franchisee.
This means that Afuri Ramen Dumpling can sell its products through various channels, such as airport and mall food courts, stadiums, grocery stores, food markets, internet sales, telephone sales, catalogue sales, and online marketplaces like Goldbelly.com, regardless of the franchisee's exclusive territory. Afuri Ramen Dumpling is not obligated to compensate the franchisee for any sales made within their territory through these alternative channels.
For a prospective Afuri Ramen Dumpling franchisee, this indicates that while they are granted a franchise territory, Afuri Ramen Dumpling can still distribute products through other avenues within that territory. This could impact the franchisee's potential revenue, as Afuri Ramen Dumpling can directly compete with them through different sales channels. It is important for potential franchisees to consider this when evaluating the potential profitability of an Afuri Ramen Dumpling franchise and to discuss with the franchisor how these alternative distribution channels might affect their business.