After transferring an Afuri Ramen Dumpling franchise, what must the franchisee immediately cease using?
Afuri_Ramen_Dumpling Franchise · 2024 FDDAnswer from 2024 FDD Document
[NOTE: The following Section 2 is for franchise transfers but not for franchise renewals:]
- [2. Franchisee to Cease Using Trade Names, Marks, and Logos. Upon completion of the transfer, Franchisee will immediately cease using Franchisor's trade names, service marks, logos, and other marks, symbols or materials indicating that Franchisee is or was related to Franchisor in any way, except as otherwise provided in writing. Franchisee acknowledges that all such names, service marks, logos, and symbols are the exclusive property of Franchisor and that Franchisee has been allowed to use them, only in conjunction with the franchise relationship as outlined in this Agreement. Franchisee will remain jointly and severally bound to comply with the covenants in the Franchise Agreement which expressly or by reasonable implication are intended to apply to Franchisee after termination of the Franchise Agreement, including any applicable non-disclosure requirements. Franchisee will immediately:
- A. deliver to Transferee or Franchisor all copies of the Operations Manuals, training materials, and any other franchise-related materials in Franchisee's custody, control or possession (or destroy such materials if requested by Franchisor);
- B. take action as required to transfer to Transferee all registrations relating to the use of all assumed names;
- C. notify the telephone company and all listing agencies of the transfer of Franchisee's rights to use the franchise names and logos and classified and directory listings of the franchise;
- D. cease use of the franchise trademarks, service marks, trade names, copyrights, and other intellectual or intangible property; and
- E. refrain from doing business in any way that might tend to give the public the impression that Franchisee still is or was a franchisee in the franchise system;]
Source: Item 23 — Receipts (FDD pages 50–189)
What This Means (2024 FDD)
According to Afuri Ramen Dumpling's 2024 Franchise Disclosure Document, after completing a franchise transfer, the franchisee must immediately stop using Afuri Ramen Dumpling's trade names, service marks, logos, and other marks, symbols, or materials that suggest a connection to the franchisor. The only exception to this is if Afuri Ramen Dumpling provides written permission to continue using these items.
This requirement is in place because all of these identifiers are the exclusive property of Afuri Ramen Dumpling. The franchisee is only allowed to use them during the term of the franchise agreement. The franchisee also remains responsible for following the franchise agreement's requirements related to non-disclosure, even after the transfer.
In practical terms, this means a transferring franchisee must remove all Afuri Ramen Dumpling branding from their business and marketing materials as soon as the transfer is finalized. This includes signage, menus, websites, and any other materials that identify the business as an Afuri Ramen Dumpling franchise. The franchisee must also notify the phone company and listing agencies about the transfer of rights to use the franchise names and logos, as well as classified and directory listings of the franchise. This ensures a clean break between the transferring franchisee and the Afuri Ramen Dumpling brand, protecting the integrity of the brand and preventing confusion among customers.