Does Afuri Ramen Dumpling have an agreement to reimburse Afuri USA Inc. for any tax incurred?

According to Afuri Ramen Dumpling's 2024 Franchise Disclosure Document, Afuri Franchise, Inc. files a consolidated federal income tax return with its stockholder, Afuri USA Inc. However, there is no agreement in place that requires Afuri Franchise, Inc. to reimburse Afuri USA Inc. for any tax incurred.

This means that Afuri Ramen Dumpling franchisees are not directly responsible for covering the tax liabilities of Afuri USA Inc., the parent company, as there is no formal agreement mandating such reimbursement. This arrangement can be seen as a potential benefit for franchisees, as it shields them from unexpected tax obligations related to the parent company's tax filings.

It is important for prospective franchisees to understand the financial relationship between Afuri Franchise, Inc. and its parent company, Afuri USA Inc., and how tax responsibilities are allocated. While the FDD states there is no agreement for reimbursement, franchisees should continue to monitor any changes to this arrangement and seek clarification from the franchisor if needed to fully understand their financial obligations.