Who bears the expense for the retraining programs required for Afuri Ramen Dumpling franchisees during renewal?
Afuri_Ramen_Dumpling Franchise · 2024 FDDAnswer from 2024 FDD Document
the financial statements were available to be issued.
NOTE 3 - FRANCHISING
The Company executes franchise agreements that set the terms of its arrangements with each franchisee. The franchise agreements typically require the franchisee to pay an initial, non-refundable fee of $45,000, which includes required training costs. The franchise agreements also require the franchisee to pay monthly royalty fees based on revenue levels. The franchisee pays marketing fees monthly to cover advertising, market research, and search engine optimization. Subject to the Company's approval and payment of a renewal fee, a franchisee may generally renew its agreement upon expiration. Direct costs of sales and
Source: Item 23 — Receipts (FDD pages 50–189)
What This Means (2024 FDD)
The 2024 Afuri Ramen Dumpling Franchise Disclosure Document states that the company executes franchise agreements that set the terms of its arrangements with each franchisee. These agreements typically require the franchisee to pay an initial, non-refundable fee of $45,000, which includes required training costs.
Furthermore, the franchisee is responsible for paying monthly royalty fees based on revenue levels and marketing fees to cover advertising, market research, and search engine optimization. While franchisees may generally renew their agreement upon expiration subject to Afuri Ramen Dumpling's approval and payment of a renewal fee, the FDD does not explicitly state who bears the expense for retraining programs required for franchisees during renewal.
Therefore, it remains unclear whether Afuri Ramen Dumpling or the franchisee is responsible for covering the costs associated with retraining programs during the renewal process. A prospective franchisee should seek clarification from the franchisor regarding the specific terms and conditions related to retraining expenses during the renewal period to fully understand their financial obligations.