On what is the Afuri Ramen Dumpling commission based when they find the transferee?
Afuri_Ramen_Dumpling Franchise · 2024 FDDAnswer from 2024 FDD Document
or and complete to Franchisor's exclusive satisfaction the training programs now required of new franchisees. [Transferee has completed to Franchisor's satisfaction the training programs now required of new franchisees.] [Transferee has demonstrated to Franchisor's satisfaction sufficient ability to successfully operate the franchise]. Franchisee or Transferee have submitted to Franchisor, u
Source: Item 23 — Receipts (FDD pages 50–189)
What This Means (2024 FDD)
According to the 2024 Afuri Ramen Dumpling Franchise Disclosure Document, if the franchisor obtains a transferee for the franchisee, Afuri Ramen Dumpling receives a commission based on a percentage of the gross transfer price, excluding the price of real property. The specific percentage and dollar amount are not defined in the agreement but are to be determined at the time of the transfer.
This means that when a franchisee sells their Afuri Ramen Dumpling franchise, and the franchisor finds the buyer, Afuri Ramen Dumpling will be paid a commission. This commission is calculated as a percentage of the total selling price of the franchise, but it does not include any value attributed to real estate.
For a prospective franchisee, this highlights the importance of understanding all potential transfer costs and how they will be calculated. It would be prudent to discuss with Afuri Ramen Dumpling what typical commission percentages have been in past franchise transfers to better anticipate potential costs. This also emphasizes the need to understand what factors contribute to the 'gross transfer price' to ensure clarity on what the commission will be based upon.