What is the purpose of Exhibit 1 to the Afuri Ramen Dumpling Franchise Agreement?
Afuri_Ramen_Dumpling Franchise · 2024 FDDAnswer from 2024 FDD Document
THEREFORE, in consideration of the mutual promises and covenants contained in this Agreement, the parties agree as follows:
1 GRANT OF FRANCHISE AND FRANCHISE TERRITORY
- 1.1 Grant of Franchise and Franchise Territory. We grant to you, and you accept from us, the franchise, license, and privilege to use the Marks, the System, and merchandise bearing the Marks, for 10 years from the date of this Agreement (the "Franchise"). This grant solely is for the operation by you of one Afuri Franchise at the location identified in the attached Exhibit 1 (the "Franchise Premises") and in the geographical territory identified in the same exhibit (the "Franchise Territory").
- 1.1.1 Franchise Territory. Except as otherwise provided in this Agreement, during the term of this Agreement, we agree not to locate, or license anyone else to locate, any business using the Marks or the System within the Franchise Territory, without your prior written consent. However, we may purchase
Source: Item 23 — Receipts (FDD pages 50–189)
What This Means (2024 FDD)
According to the 2024 Afuri Ramen Dumpling Franchise Disclosure Document, Exhibit 1 to the Franchise Agreement specifies the location of the franchise premises and the geographical territory granted to the franchisee. The franchise agreement grants the franchisee the right to operate an Afuri Ramen Dumpling franchise at the location identified in Exhibit 1, as well as the geographical territory outlined in the same exhibit.
This exhibit is important because it defines the physical space where the franchisee is authorized to operate their Afuri Ramen Dumpling restaurant. It also establishes the boundaries of the franchisee's exclusive territory, within which Afuri Ramen Dumpling agrees not to locate, or license others to locate, another business using the Afuri Ramen Dumpling marks or system, without the franchisee's written consent. This territorial protection is subject to certain exceptions, such as the possibility of Afuri Ramen Dumpling being purchased by or merging with competing businesses.
The franchisee is restricted from conducting business outside of the Franchise Premises, and any catering or delivery services must be within the Franchise Territory, unless otherwise authorized by Afuri Ramen Dumpling. The franchisee also needs permission to place advertisements using Afuri Ramen Dumpling's marks in or originating from any area outside the Franchise Territory. These stipulations ensure that the franchisee focuses their efforts within their designated area and does not infringe upon the territories of other franchisees.
Prospective franchisees should carefully review Exhibit 1 to fully understand the location and territorial rights they are being granted, as well as any limitations or exceptions that may apply. This will help them assess the potential market and competition within their territory and make informed decisions about their investment.