Is there a requirement for all owners of the company to sign the Afuri Ramen Dumpling Franchise Agreement?

According to Afuri Ramen Dumpling's 2024 Franchise Disclosure Document, if the franchisee is a corporation, limited liability company, or other business entity, the agreement should be signed by a company officer or owner authorized to sign on behalf of the company. In addition to this signature, the franchise agreement must be signed by all officers and owners of the company as individuals. This indicates a requirement for all owners to sign the agreement in their individual capacity when the franchisee is a business entity.

This requirement ensures that all individuals with ownership in the franchisee entity are personally bound by the terms of the Franchise Agreement. This is a common practice in franchising to prevent owners from shielding themselves behind a corporate structure and to ensure their commitment to the franchise obligations. By signing as individuals, the owners acknowledge their personal responsibility for upholding the agreement.

Prospective Afuri Ramen Dumpling franchisees should be aware of this requirement and ensure that all officers and owners are prepared to sign the agreement in their individual capacities. This may involve a review of the agreement with legal counsel to fully understand the obligations and liabilities being undertaken. Additionally, this requirement extends to transferees of the franchise, meaning that any new owners or officers joining the franchisee entity in the future will also be required to sign the agreement personally.