What standards of product and service must an Afuri Ramen Dumpling franchisee maintain?
Afuri_Ramen_Dumpling Franchise · 2024 FDDAnswer from 2024 FDD Document
C. As a franchisee, you are in an independent contractor relationship with us. You independently own and operate your Franchise. While we establish standards and recommendations for desired outcomes to protect our systems and brand, as an independent contractor franchisee, you generally determine the means to accomplish such outcomes. You are responsible for the day-to-day operation of your Franchise.
3 COVENANT OF NON-USE.
You agree not to use Confidential Information or the System, except as authorized by us.
You will obligate your owners, board of directors, your employees, and your agents to the same non-use covenant.
We must approve in writing any use of Confidential Information or System by you or your owners or your directors or employees.
- 5 RECIPES.
Without limiting the generality of the non-disclosure and non-use provisions in this Agreement, you specifically agree not to disclose or use our recipes (by yourself or by or through any other entity or individual) in any manner other than in connection with Afuri franchises pursuant to the Franchise Agreement.
6.1 Covenant. During the term of your association with Franchisee and for two years thereafter, you will not directly or indirectly (including by or through any other person or entity) participate as an owner, director, officer, employee, consultant, licensor, licensee, distributor, or agent, or serve in any other capacity in any business engaged in the offer, sale, or promotion of: (1) ramen, (2) other Japanese style cuisine, (3) Vietnamese pho, or (4) any business that offers products or services that are essentially the same as, or substantially similar to, the products and services that are part of the System.
You must fully honor all Gift Cards that are in the form we provide or approve, regardless of whether a Gift Card was issued by you or another Afuri location.
You must comply with our policies and procedures regarding requesting reimbursement for Gift Cards issued by other Afuri locations and for making timely payment to other Afuri locations, or a third-party service provider for Gift Cards issued from your franchise location that are honored by other Afuri locations.
You must use our designated architect to create your general project concept and schematics.
You may use a local architect, subject to our prior approval, to provide detailed construction blueprints, which must comply with our specifications and approval, and to assist with permitting and other services.
We will be permitted, to the extent permitted by relevant law, to establish price ceilings or minimum or maximum allowable prices on the products and services you offer and sell.
You may be required go through us to update menu pricing on our end as we will maintain control over the menu and related customer-facing information via our custom or proprietary software.
Source: Item 23 — Receipts (FDD pages 50–189)
What This Means (2024 FDD)
According to the 2024 Afuri Ramen Dumpling Franchise Disclosure Document, franchisees must adhere to specific standards to maintain the quality and consistency of the brand. Afuri Ramen Dumpling establishes standards and recommendations to protect their systems and brand, while franchisees, as independent contractors, determine how to achieve those outcomes in their day-to-day operations. Franchisees must use Afuri Ramen Dumpling's designated architect for the general project concept and schematics, though they can use a local architect for detailed construction blueprints, subject to Afuri Ramen Dumpling's approval. These blueprints must comply with Afuri Ramen Dumpling's specifications.
To ensure brand consistency, Afuri Ramen Dumpling retains control over menu pricing and related customer-facing information through its software. Franchisees are obligated to fully honor all gift cards in the approved form, regardless of which Afuri Ramen Dumpling location issued them, and must follow the franchisor's policies for gift card reimbursements and payments.
Additionally, franchisees must protect Afuri Ramen Dumpling's confidential information and system, which includes recipes, and are prohibited from using them outside of the franchised business. This obligation extends to the franchisee's owners, board of directors, employees, and agents. Franchisees also agree to a non-competition covenant during their association with Afuri Ramen Dumpling and for two years afterward, preventing them from participating in similar businesses that offer ramen, other Japanese cuisine, or Vietnamese pho. This covenant applies within the Franchise Territory, within a 50-mile radius of the Franchise Territory, within a 50-mile radius of any location or franchise territory where Afuri Ramen Dumpling operates or has granted a franchise, and within the United States of America.