Does Afuri Ramen Dumpling reserve the right to use the Marks for any purpose?
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.
You may not independently market on the Internet, conduct e-commerce, or make sales via online marketplaces except as otherwise allowed by us in the Operations Manual.
- D. to locate Afuri company-owned and franchised restaurant locations anywhere outside of your Franchise Territory.
Source: Item 23 — Receipts (FDD pages 50–189)
What This Means (2024 FDD)
According to Afuri Ramen Dumpling's 2024 Franchise Disclosure Document, Afuri Ramen Dumpling retains significant rights regarding the use of its trademarks and service marks, referred to as the "Marks." Specifically, Afuri Ramen Dumpling reserves the right to use or license the use of the Marks to anyone, for any purpose, and at any location. However, they will not place an Afuri Ramen Dumpling restaurant within a franchisee's exclusive territory. This reservation of rights extends to various channels of distribution and locations, including establishments in airport and mall food courts, stadiums, grocery stores, and online marketplaces.
This means that while a franchisee is granted the right to operate an Afuri Ramen Dumpling restaurant within a specific territory, Afuri Ramen Dumpling maintains the freedom to exploit its brand through other avenues. This includes selling products or services under the Afuri Ramen Dumpling name through different distribution channels, even within the franchisee's territory, without any obligation to compensate the franchisee for such sales. These alternative distribution methods may include internet sales, telephone sales, catalogue sales, and sales via online marketplaces.
Furthermore, Afuri Ramen Dumpling retains the exclusive right to use the Internet to promote the Marks and offer Afuri Ramen Dumpling-related products and services. Franchisees are restricted from independently marketing on the Internet, conducting e-commerce, or making sales via online marketplaces unless specifically allowed by Afuri Ramen Dumpling in the Operations Manual. Afuri Ramen Dumpling also reserves the right to locate both company-owned and franchised restaurant locations anywhere outside of a franchisee's designated territory.
For a prospective franchisee, this indicates that while they receive a franchise and territory, Afuri Ramen Dumpling retains considerable control over brand usage and distribution. The franchisee's territory is protected only against other brick-and-mortar Afuri Ramen Dumpling restaurants, not against other forms of sales or distribution. This could impact a franchisee's potential revenue and market share, as Afuri Ramen Dumpling can leverage its brand in various ways, potentially competing with the franchisee within their own territory.