Does Afuri Ramen Dumpling have the authority to dissolve the Advisory Council?
Afuri_Ramen_Dumpling Franchise · 2024 FDDAnswer from 2024 FDD Document
We may form an Advisory Council, which would be composed of franchisees and our representatives. The Council may work with us to improve the System, the products and services offered at franchised restaurants, advertising and promotional campaigns, and other matters. The franchisee representatives may be selected by us or may be selected by a vote of other franchisees in the System. The Council will serve in an advisory capacity only. If you participate on a Council, you will pay any costs you incur related to your participation, such as travel and living expenses to attend Council meetings. We will have the authority to dissolve, change and reform the Council.
Source: Item 11 — Franchisor's Assistance, Advertising, Computer Systems, and Training (FDD pages 27–34)
What This Means (2024 FDD)
According to the 2024 Afuri Ramen Dumpling FDD, Afuri Ramen Dumpling retains the authority to dissolve, change, and reform the Advisory Council. The Advisory Council, if formed, is composed of franchisees and representatives from Afuri Ramen Dumpling. The council's purpose is to collaborate with Afuri Ramen Dumpling to improve the system, products, services, advertising, and promotional campaigns.
Franchisee representatives on the Advisory Council may be selected either by Afuri Ramen Dumpling or through a vote by other franchisees within the system. It is important to note that the council serves only in an advisory capacity, meaning its decisions are not binding on Afuri Ramen Dumpling. Franchisees who participate on the council are responsible for covering their own expenses, such as travel and lodging, to attend council meetings.
The fact that Afuri Ramen Dumpling has the explicit authority to dissolve, change, and reform the council indicates that the franchisor maintains ultimate control over this body. While the Advisory Council can provide valuable input and feedback from the franchisee perspective, Afuri Ramen Dumpling is not obligated to follow its recommendations. This structure is fairly common in franchising, where the franchisor typically retains final decision-making power to ensure consistency and protect the brand.