Besides items with specifications from suppliers of the franchisee's choosing, what is the requirement for purchasing other goods and services for opening and operating an Afuri Ramen Dumpling franchise?
Afuri_Ramen_Dumpling Franchise · 2024 FDDAnswer from 2024 FDD Document
- You must purchase all other goods and services related to opening and operating your franchise from approved or exclusively designated suppliers unless we specify otherwise in our Operations Manual.
Source: Item 8 — Restrictions on Sources of Products and Services (FDD pages 22–26)
What This Means (2024 FDD)
According to Afuri Ramen Dumpling's 2024 Franchise Disclosure Document, franchisees must purchase all other goods and services related to opening and operating their franchise from approved or exclusively designated suppliers, unless otherwise specified in the Operations Manual.
Afuri Ramen Dumpling retains the right to approve suppliers. A franchisee can request approval for products, equipment, supplies, or materials from sources not previously approved, but must provide sufficient information to allow Afuri Ramen Dumpling to determine whether the items meet their specifications and standards. These standards relate to quality, taste, durability, value, cleanliness, texture, composition, strength, finish, and appearance, as well as the supplier's capacity and facility to supply the franchisee's needs. The franchisee will reimburse Afuri Ramen Dumpling for the actual cost of testing samples from any supplier at a designated independent testing laboratory.
Afuri Ramen Dumpling estimates that required purchases from them, their affiliates, approved suppliers, or in compliance with their specifications will be from 50% to 75% of the total purchases to establish the franchise and from 25% to 35% of the total purchases to operate the franchise. This means a significant portion of a franchisee's initial and ongoing expenses will be dictated by Afuri Ramen Dumpling's sourcing requirements.
Afuri Ramen Dumpling, intends to negotiate purchase arrangements with suppliers, including price terms, for the benefit of their franchisees and may create purchasing cooperatives in the future. However, franchisees are not allowed to sell any products, services, or activities other than those specifically recognized and approved by Afuri Ramen Dumpling as part of the franchise system without prior written approval.