What is the condition regarding the completion of training programs for the transferee of an Afuri Ramen Dumpling franchise?
Afuri_Ramen_Dumpling Franchise · 2024 FDDAnswer from 2024 FDD Document
Before the effective date of a transfer we approve:
- D.
The transferee will pay for and complete to our exclusive satisfaction the training programs we then require of new franchisees or otherwise show to our satisfaction sufficient ability to successfully operate the Franchise.
- E.
You or the transferee will pay a Transfer Fee according to our then-current Transfer Fee Schedule.
This fee will reimburse us for our reasonable legal, accounting, credit check, and
investigation expenses that result from the transfer, as well as the mandatory training program for the transferee. The current Transfer Fee is $30,000.
- H.
The transferee will execute all documents we then require of new franchisees.
Source: Item 23 — Receipts (FDD pages 50–189)
What This Means (2024 FDD)
According to Afuri Ramen Dumpling's 2024 Franchise Disclosure Document, if a franchisee transfers their franchise to a new owner, the transferee must fulfill specific training requirements. Before the transfer is finalized, the transferee must either complete the training programs that Afuri Ramen Dumpling requires of new franchisees to the company's satisfaction or otherwise demonstrate sufficient ability to successfully manage the franchise.
This condition ensures that the new owner is adequately prepared to operate the Afuri Ramen Dumpling franchise according to the brand's standards. The FDD also states that the transferee or the original franchisee is responsible for covering the costs associated with this mandatory training program as part of the transfer fee. The current transfer fee is $30,000, which covers the franchisor's legal, accounting, credit check, investigation expenses, and the transferee's training.
This requirement protects the Afuri Ramen Dumpling brand by ensuring that all franchisees, including those who acquire existing locations, possess the necessary skills and knowledge to maintain quality and consistency. It also aligns with common franchising practices, where franchisors typically require transferees to undergo training to uphold brand standards and operational efficiency. Additionally, the transferee will have to execute all documents that Afuri Ramen Dumpling requires of new franchisees.