What conditions, besides not being in breach, must an Afuri Ramen Dumpling franchisee meet to renew their franchise?
Afuri_Ramen_Dumpling Franchise · 2024 FDDAnswer from 2024 FDD Document
- 6.1.1 Renewal Franchise Agreement. If you are not in breach, you may renew the Franchise for periods of 10 years under the terms of our then-current Franchise Agreement forms. "Then-current," as used in this Agreement and applied to our Franchise Disclosure Document and Area Development Addendum will mean the form then currently provided to prospective franchisees or area developers, or if not then being provided, then the form we select in our sole discretion which previously has been delivered to and executed by a franchisee of ours (with appropriate modifications to reflect the fact that the agreement relates to the grant of a renewal franchise). These forms may vary materially from this Agreement. Royalty Fees, Advertising Fees, and other fees will be set at the then prevailing rates and terms. Your failure or refusal to execute the renewal Franchise Agreement forms within 30 days after delivery to you may be regarded as an election by you not to renew. Upon renewal, the Franchise Territory may be modified and its geographic area may be reduced or expanded to meet our then-current franchise market penetration and demographic standards.
- 6.1.2 Additional Conditions for Renewal. To renew, you must comply with the following additional conditions:
Source: Item 23 — Receipts (FDD pages 50–189)
What This Means (2024 FDD)
According to Afuri Ramen Dumpling's 2024 Franchise Disclosure Document, a franchisee, if not in breach of the agreement, can renew their franchise for additional 10-year periods. The renewal will be under the terms of Afuri Ramen Dumpling's then-current Franchise Agreement forms, which may differ significantly from the original agreement.
The renewal agreement will dictate the royalty fees, advertising fees, and other fees at the prevailing rates and terms at the time of renewal. The franchisee must execute the renewal Franchise Agreement forms within 30 days of receiving them; failure to do so may be considered an election not to renew the franchise.
Upon renewal, Afuri Ramen Dumpling has the right to modify the franchise territory, potentially reducing or expanding its geographic area based on the company's current market penetration and demographic standards. This means that while a franchisee has the option to renew, the terms, fees, and even the territory of the franchise could change substantially, reflecting Afuri Ramen Dumpling's strategic interests at the time of renewal.