Under what conditions can the license agreement between Afuri Ramen Dumpling and AFURI-JPN be terminated?
Afuri_Ramen_Dumpling Franchise · 2024 FDDAnswer from 2024 FDD Document
We signed a license agreement (the "License Agreement") with AFURI-JPN dated March 29, 2018 for the license right to use, and to sublicense to our franchisees the right to use, the marks in our franchise system. The License Agreement is for 10-year renewable terms and may only be terminated for good cause. We do not anticipate any issue with your use of the Afuri marks because AFURI-JPN is our parent company.
Source: Item 13 — Trademarks (FDD pages 37–39)
What This Means (2024 FDD)
According to Afuri Ramen Dumpling's 2024 Franchise Disclosure Document, the license agreement between Afuri Ramen Dumpling and AFURI-JPN, dated March 29, 2018, is for 10-year renewable terms. The agreement grants Afuri Ramen Dumpling the right to use and sublicense its trademarks to franchisees.
The FDD states that the License Agreement may only be terminated for good cause. Because AFURI-JPN is Afuri Ramen Dumpling's parent company, the document anticipates no issues with the franchisee's use of the Afuri marks.
Prospective franchisees should be aware that while the FDD mentions the license agreement can be terminated for "good cause", it does not define what constitutes "good cause." It would be prudent for potential franchisees to seek clarification from Afuri Ramen Dumpling regarding the specific conditions that would lead to the termination of the License Agreement, as this could impact their ability to operate under the Afuri Ramen Dumpling brand.