Upon termination of the Afuri Ramen Dumpling agreement, what must I discontinue using?
Afuri_Ramen_Dumpling Franchise · 2024 FDDAnswer from 2024 FDD Document
- 3 COVENANT OF NON-USE.
You agree not to use Confidential Information or the System, except as authorized by us.
You will obligate your owners, board of directors, your employees, and your agents to the same non-use covenant.
We must approve in writing any use of Confidential Information or System by you or your owners or your directors or employees.
- 4 RETURN OF CONFIDENTIAL INFORMATION.
You agree that all originals and copies of records, data, reports, documents, lists, plans, drawings, correspondence, memoranda, notes, and other materials related to or containing any Confidential Information, in whatever form they exist, whether written, visual, audio, video, or other form of media, shall be our sole and exclusive property.
Upon request by us, you will promptly return to us all documents or other tangible property that contains Confidential Information.
- 5 RECIPES.
Without limiting the generality of the non-disclosure and non-use provisions in this Agreement, you specifically agree not to disclose or use our recipes (by yourself or by or through any other entity or individual) in any manner other than in connection with Afuri franchises pursuant to the Franchise Agreement.
6 NON-COMPETITION COVENANT.
6.1 Covenant. During the term of your association with Franchisee and for two years thereafter, you will not directly or indirectly (including by or through any other person or entity) participate as an owner, director, officer, employee, consultant, licensor, licensee, distributor, or agent, or serve in any other capacity in any business engaged in the offer, sale, or promotion of: (1) ramen, (2) other Japanese style cuisine, (3) Vietnamese pho, or (4) any business that offers products or services that are essentially the same as, or substantially similar to, the products and services that are part of the
Source: Item 23 — Receipts (FDD pages 50–189)
What This Means (2024 FDD)
According to Afuri Ramen Dumpling's 2024 Franchise Disclosure Document, franchisees must cease using Confidential Information and the System upon termination of the franchise agreement, unless explicitly authorized in writing by Afuri Ramen Dumpling. This non-use covenant extends to the franchisee's owners, board of directors, employees, and agents, ensuring a comprehensive restriction on utilizing proprietary information. The definition of 'you' in the agreement includes not only the individual franchisee but also any entity owning a majority interest in the franchise or in which the franchisee holds a majority interest, as well as successors to the franchisee's interest. This broad definition ensures that the non-use obligations apply to a wide range of related parties.
Furthermore, all originals and copies of records, data, reports, documents, lists, plans, drawings, correspondence, memoranda, notes, and other materials related to or containing any Confidential Information, regardless of their form (written, visual, audio, video, or other media), remain the sole and exclusive property of Afuri Ramen Dumpling. Upon request, the franchisee must promptly return all documents or tangible property containing Confidential Information to Afuri Ramen Dumpling. This requirement ensures that all sensitive materials are returned to the franchisor, preventing unauthorized use or disclosure after the termination of the franchise agreement.
Specifically, franchisees are prohibited from disclosing or using Afuri Ramen Dumpling's recipes in any manner other than in connection with authorized Afuri Ramen Dumpling franchises. This restriction applies to both the franchisee and any other entity or individual acting on their behalf. The non-competition covenant further restricts franchisees from participating in businesses offering ramen, other Japanese-style cuisine, Vietnamese pho, or any business offering substantially similar products or services to the Afuri Ramen Dumpling System for a period of two years after the termination of the franchise agreement. This comprehensive set of restrictions aims to protect Afuri Ramen Dumpling's proprietary information, recipes, and market position after a franchise agreement ends.