What commission does Afuri Ramen Dumpling charge if they find the transferee for the franchise?
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 Afuri Ramen Dumpling's 2024 Franchise Disclosure Document, if Afuri Ramen Dumpling finds the transferee for the franchise, the franchisee pays a commission based on a percentage of the gross transfer price (excluding real property costs). The exact percentage and dollar amount are not specified in the agreement excerpt.
This commission compensates Afuri Ramen Dumpling for securing the transferee. This is in addition to the transfer fee, which covers Afuri Ramen Dumpling's expenses for legal, accounting, credit check, training, and investigation related to the transfer.
Prospective franchisees should negotiate the specific percentage of the commission with Afuri Ramen Dumpling during the franchise agreement process to fully understand the costs associated with transferring the franchise if Afuri Ramen Dumpling identifies the buyer.