factual

For Afuri Ramen Dumpling, am I responsible for finding the location of the Franchise Premises?

Afuri_Ramen_Dumpling Franchise · 2024 FDD

Answer from 2024 FDD Document

nce with the terms of the Franchise Agreement. The Operations Manual may contain additional information about co-branded locations.

  • 1.2 One Location for Franchise. You will operate the Franchise only at the Franchise Premises. If not determined when this Agreement is executed, you are responsible for selecting the site for the Franchise Premises within the search area ("Search Area") outlined in Exhibit 1 and in accordance with this Agreement.

1.3 Assistance in Site Location.

  • 1.3.1 Unless we approve otherwise, the Franchise Premises for your first location will have a commissary kitchen. Unless we approve otherwise, the Franchise Premises for each additional location will be serviced by your commissary kitchen at your first Franchise Premises. For the first Franchise Premises with a commissary kitchen, the location will typically be a single story to facilitate ventilation.
  • 1.3.2 You are responsible for finding the location of the Franchise Premises subject to our approval. The factors we may consider in approving or rejecting proposed site selections include, but are not limited to, the following: general location and neighborhood; traffic patterns; parking; physical characteristics of existing buildings; lease terms; population density; and population demographics. Also, we typically require that the Franchise Premises be at a new building (as opposed to a "second generation" restaurant location). We may modify these factors at our discretion.
    • 1.3.3 If you request assistance in selecting a site for the Franchise Premises, we may provide

reasonable assistance in finding a location acceptable to you. If requested, you will pay for all reasonable out-of-pocket expenses related to any such site selection assistance, including travel and lodging expenses we incur to help you locate sites. Any on-site assistance is subject to our availability. You will bear all other site selection and lease negotiation expenses.

  • 1.3.4 Neither we nor any of our employees have special expertise in selecting sites. We do not make guarantees with respect to any location you select or lease you sign. We will not be liable for any consequences of your choice of any franchise site. Any site recommendation or approval we make is not a representation that any particular site is available or legally appropriate for use as a franchise site. It is your responsibility to investigate all applicable zoning, licensing, leasing, and other requirements for any proposed site. You must ensure that the site you select complies with these requirements.
  • 1.3.5 You acknowledge and agree that any location we select or approve, and any lease we approve will be with the understanding that it meets our minimum acceptable criteria based upon our general business experience. The location for the Franchise Premises must meet our minimum square footage and other standards outlined in our Operations Manual. You acknowledge that you are responsible for reviewing and determining the appropriateness and desirability of the lease. We will have no liability with respect to the selection or approval of a location or any lease for the Premises, nor liability with respect to any site recommendations we make.
  • 1.3.6 Before you enter a lease or purchase agreement for the Franchise Premises, you will submit the lease or purchase documents to us for approval. Lease documents must include the Franchise Premises Lease Agreement Rider attached in Exhibit 2 or otherwise include an assignment of the lease in a form we approve, pursuant to which we may assume the lease as provided in Exhibit 2. You will deliver to us a true copy of the lease and any additions or amendments to it promptly after they are executed.
  • 1.3.7 If we cure any breach by you under the lease or sublease, the total amount of all costs and payments we incur in effecting the cure will be immediately due and owing by you to us.
    • 1.4 Franchise Development. You will be responsible to furnish and equip the Franchise.
  • 1.4.1 We will furnish to you a schedule of equipment packages for the Franchise. Any modifications you propose must be approved in writing by us. All approvals will be solely within our discretion to maintain a uniform image consistent with Afuri franchise system concepts.

Source: Item 23 — Receipts (FDD pages 50–189)

What This Means (2024 FDD)

According to Afuri Ramen Dumpling's 2024 Franchise Disclosure Document, the franchisee is responsible for finding the location of the Franchise Premises. However, this is subject to Afuri Ramen Dumpling's approval. The franchisor may provide reasonable assistance in finding a location acceptable to the franchisee, if requested. The franchisee will be responsible for paying all reasonable out-of-pocket expenses related to site selection assistance, including travel and lodging expenses that Afuri Ramen Dumpling incurs to help locate sites. The franchisee will also bear all other site selection and lease negotiation expenses.

Afuri Ramen Dumpling will consider factors such as the general location and neighborhood, traffic patterns, parking, physical characteristics of existing buildings, lease terms, population density, and population demographics when approving or rejecting a proposed site. Afuri Ramen Dumpling typically requires that the Franchise Premises be at a new building, as opposed to a "second generation" restaurant location, but they may modify these factors at their discretion.

Afuri Ramen Dumpling does not guarantee any location selected or lease signed and will not be liable for any consequences of the franchisee's choice of any franchise site. The franchisee is responsible for investigating all applicable zoning, licensing, leasing, and other requirements for any proposed site and must ensure that the site selected complies with these requirements. The location for the Franchise Premises must meet Afuri Ramen Dumpling's minimum square footage and other standards outlined in their Operations Manual.

Before entering a lease or purchase agreement for the Franchise Premises, the franchisee must submit the lease or purchase documents to Afuri Ramen Dumpling for approval. Lease documents must include the Franchise Premises Lease Agreement Rider attached in Exhibit 2 or otherwise include an assignment of the lease in a form Afuri Ramen Dumpling approves, pursuant to which they may assume the lease as provided in Exhibit 2. The franchisee must deliver to Afuri Ramen Dumpling a true copy of the lease and any additions or amendments to it promptly after they are executed.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.