May Afuri Ramen Dumpling require a Confidentiality and Non-Disclosure Agreement from a proposed supplier?
Afuri_Ramen_Dumpling Franchise · 2024 FDDAnswer from 2024 FDD Document
5.6 You Will Not Communicate or Use Confidential Information.
- 5.6.1 You specifically acknowledge that you will receive valuable specialized and Confidential Information, including information regarding our operational, sales, promotional and marketing methods and techniques, operating procedures, processes, practices, lists of suppliers, customer lists, manuals, communications methods, accounting and reporting methods, use of custom or proprietary software, marketing and sales techniques and strategies (collectively referred to as "Confidential Information" or "Proprietary Information" in this Agreement), and the System. Unless required by court order or applicable law, you agree not to copy, download to internet, intranet, modem, fax, e-mail, mail or send any Confidential Information or divulge any Confidential Information directly or indirectly to any other person or enterprise outside of the Afuri system.
Source: Item 23 — Receipts (FDD pages 50–189)
What This Means (2024 FDD)
The 2024 Afuri Ramen Dumpling Franchise Disclosure Document (FDD) does not explicitly state whether Afuri Ramen Dumpling requires a Confidentiality and Non-Disclosure Agreement from a proposed supplier. However, the FDD emphasizes the importance of protecting the brand's confidential information and proprietary systems.
The agreement states that franchisees will receive valuable specialized and Confidential Information, including information regarding our operational, sales, promotional and marketing methods and techniques, operating procedures, processes, practices, lists of suppliers, customer lists, manuals, communications methods, accounting and reporting methods, use of custom or proprietary software, marketing and sales techniques and strategies. Franchisees must safeguard this information and limit its disclosure to only those employees who need to know it.
Given the brand's focus on protecting its confidential information, it is highly probable that Afuri Ramen Dumpling would require suppliers to sign a Confidentiality and Non-Disclosure Agreement to protect its recipes, operational methods, and other proprietary information. A prospective franchisee should clarify this point with the franchisor during their due diligence. Specifically, they should ask about the specific requirements for suppliers and whether franchisees have any input into the selection or approval process.