Can third parties claim benefits under the Afuri Ramen Dumpling franchise agreement?
Afuri_Ramen_Dumpling Franchise · 2024 FDDAnswer from 2024 FDD Document
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- Third Party Beneficiary. Tenant and Landlord acknowledge and agree that Franchisor is a thirdparty beneficiary of this Lease Agreement Rider, and Franchisor is entitled to all rights and remedies conferred upon Franchisor under this Lease Agreement Rider (which Franchisor may enforce directly against Tenant or Landlord, with or without the consent or joinder of Tenant). Notwithstanding anything contained in this Lease Agreement Rider, Franchisor will have no liability under the Lease or this Lease Agreement Rider unless Franchisor expressly enters into a written agreement with Landlord.
Source: Item 23 — Receipts (FDD pages 50–189)
What This Means (2024 FDD)
According to the 2024 Afuri Ramen Dumpling Franchise Disclosure Document, a landlord can be considered a third-party beneficiary under specific circumstances related to the lease agreement for the franchise premises.
Specifically, if Afuri Ramen Dumpling, as the tenant, enters into a Lease Agreement Rider with a landlord, the franchisor, Afuri Franchise Inc., is acknowledged as a third-party beneficiary of this rider. This grants Afuri Franchise Inc. the right to enforce the rights and remedies conferred upon it directly against the tenant or landlord, regardless of whether the tenant consents or joins in the action. However, it's important to note that Afuri Franchise Inc. assumes no liability under the lease or the rider unless it explicitly enters into a written agreement with the landlord.
This arrangement ensures that Afuri Ramen Dumpling maintains control over the brand's image and standards even in leased locations. By being a third-party beneficiary, Afuri Franchise Inc. can ensure the franchise premises are properly de-identified upon termination or expiration of the lease, and that the lease agreement is not extended, renewed, or canceled without their prior written consent. This protects the integrity of the Afuri Ramen Dumpling brand and system.