When transferring an Afuri Ramen Dumpling franchise, what documents must the transferee execute?
Afuri_Ramen_Dumpling Franchise · 2024 FDDAnswer from 2024 FDD Document
ehicles (if applicable), and signage to conform to our then-current Operations Manual and System standards.
- G. You will pay us a 10% commission on the gross transfer price (excluding the price of real property), if we obtain the transferee for you.
- H. The transferee will execute all documents we then require of new franchisees. This includes a new franchise agreement in the form we then are using. The new franchise agreement may contain economic and general terms that are materially different from those contained in this Agreement. The term of the new agreement will be for the unexpired term of this Agreement or for a new full term as we will elect. You must ask us to provide the prospective purchaser with our current form of disclosure document required by the applicable federal or provincial/state registration and disclosure laws, and a receipt for this document will be delivered to us; provided however, we will not be liable for any representations you make apart from those contained in our disclosure document.
- I. The transferee will meet our standards for quality of character, financial capacity, and experience required of a new or renewing franchisee. You will provide information we require to prove the transferee meets our standards.
- J. If permitted by applicable law, you and your owners, members, partners, officers, and directors will execute a general release in our favor.
Source: Item 23 — Receipts (FDD pages 50–189)
What This Means (2024 FDD)
According to Afuri Ramen Dumpling's 2024 Franchise Disclosure Document, a transferee must execute all documents that Afuri Ramen Dumpling requires of new franchisees. This explicitly includes a new franchise agreement, which may have materially different economic and general terms from the original agreement. The term of the new agreement will be for the unexpired term of the original agreement or for a new full term, as determined by Afuri Ramen Dumpling.
Additionally, the franchisee must request that Afuri Ramen Dumpling provide the prospective purchaser with the current form of the franchise disclosure document required by applicable federal or provincial/state registration and disclosure laws. A receipt for this document will be delivered to Afuri Ramen Dumpling.
Furthermore, if permitted by applicable law, the original franchisee and their owners, members, partners, officers, and directors will execute a general release in favor of Afuri Ramen Dumpling. This release, in a form prescribed by Afuri Ramen Dumpling, releases any claims against Afuri Ramen Dumpling and its representatives, subsidiaries, affiliates, officers, directors, attorneys, shareholders, and employees in their corporate and individual capacities. These claims include those arising under federal, state, and local laws, rules, and ordinances related to the offer, sale, and performance of the Franchise Agreement or any other agreement between the parties.