When transferring an Afuri Ramen Dumpling franchise, is the franchisee required to release Afuri Ramen Dumpling from obligations?
Afuri_Ramen_Dumpling Franchise · 2024 FDDAnswer from 2024 FDD Document
| Provision | Section in Franchise Agreement ("FA") | Summary |
|---|---|---|
| m. Conditions for franchisor approval of transfer | FA Section 7.1 | The transferee must qualify as a franchisee, assume your obligations, and successfully pay for and complete the mandatory training. You may not be in default, must release us, and you or the transferee must pay the Transfer Fee. |
Source: Item 17 — Renewal, Termination, Transfer, and Dispute Resolution (FDD pages 40–45)
What This Means (2024 FDD)
According to the 2024 Afuri Ramen Dumpling Franchise Disclosure Document, a franchisee is required to release Afuri Ramen Dumpling when transferring their franchise. Specifically, the FDD outlines the conditions that must be met for the franchisor to approve a transfer.
One of these conditions is that the franchisee must release Afuri Ramen Dumpling from any further obligations. This means that upon the completion of the transfer to a new franchisee, the original franchisee is no longer liable for any responsibilities or debts associated with the franchise agreement.
In addition to releasing Afuri Ramen Dumpling, the franchisee also needs to ensure that the transferee qualifies as a franchisee, the transferee assumes all of the franchisee's obligations, the transferee successfully pays for and completes the mandatory training, and that either the franchisee or the transferee pays the transfer fee. Meeting all of these conditions is necessary for Afuri Ramen Dumpling to approve the transfer.