What other remedies remain available to Afuri Ramen Dumpling despite the liquidated damages provision?
Afuri_Ramen_Dumpling Franchise · 2024 FDDAnswer from 2024 FDD Document
The parties further acknowledge and agree that the liquidated damages specified in this Section are only intended to compensate Afuri for the early termination of this Agreement and Afuri's loss of royalty revenue resulting therefrom, but not for any other breach of this Agreement by Franchisee or any other damages incurred by Afuri, and all remedies applicable thereto remain available to Afuri.
Source: Item 23 — Receipts (FDD pages 50–189)
What This Means (2024 FDD)
According to Afuri Ramen Dumpling's 2024 Franchise Disclosure Document, the franchisor retains rights to remedies beyond the liquidated damages specified in the franchise agreement. The liquidated damages are intended to compensate Afuri Ramen Dumpling for the early termination of the agreement and the resulting loss of royalty revenue, but do not cover other breaches or damages.
Specifically, Afuri Ramen Dumpling is entitled to all applicable remedies for any other breach of the agreement by the franchisee or any other damages incurred by Afuri Ramen Dumpling. This means that even if the liquidated damages provision is enforced, Afuri Ramen Dumpling can still pursue additional legal or equitable remedies for other violations of the franchise agreement.
This is a significant point for prospective franchisees. While the liquidated damages provision sets a specific financial consequence for early termination, it does not limit Afuri Ramen Dumpling's ability to seek further compensation or other remedies for different types of breaches. Franchisees should be aware that they could face additional financial or legal repercussions beyond the liquidated damages if they violate other terms of the franchise agreement.