Upon termination of an Afuri Ramen Dumpling franchise, what happens to the security codes?

According to the 2024 FDD, upon termination of the Afuri Ramen Dumpling franchise agreement for any reason, the franchisee is required to return to Afuri Ramen Dumpling all proprietary and confidential materials. This includes customer lists and account information, keys, codes, signage, advertising and marketing materials, service agreements and other forms, printed files, and security codes. These items, along with additional similar items and information described in the Operations Manual, must be returned to Afuri Ramen Dumpling.

If the franchisee fails to return or cease the use of any of these items, Afuri Ramen Dumpling has the right to enter the business premises to remove and retain the items without being considered guilty of trespass or any other tort. The franchisee is responsible for paying any expenses incurred by Afuri Ramen Dumpling in the process of removing or collecting such items or in attempting to have the franchisee cease using them.

This provision ensures that Afuri Ramen Dumpling maintains control over its confidential and proprietary information, preventing it from being used by the former franchisee after the termination of the agreement. This is a standard practice in franchising to protect the brand's intellectual property and operational methods. The franchisee should be aware of this obligation and ensure compliance to avoid potential disputes and additional expenses upon termination.