What conditions must be met for Afuri Ramen Dumpling to approve a transfer of the franchise?
Afuri_Ramen_Dumpling Franchise · 2024 FDDAnswer from 2024 FDD Document
| Provision | Section in Franchise Agreement ("FA") | Summary |
|---|---|---|
| m. Conditions for franchisor approval of transfer | FA Section 7.1 | The transferee must qualify as a franchisee, assume your obligations, and successfully pay for and complete the mandatory training. You may not be in default, must release us, and you or the transferee must pay the Transfer Fee. |
Source: Item 17 — Renewal, Termination, Transfer, and Dispute Resolution (FDD pages 40–45)
What This Means (2024 FDD)
According to the 2024 Afuri Ramen Dumpling Franchise Disclosure Document, the franchisor has the right to approve all transfers of the franchise. For Afuri Ramen Dumpling to approve a transfer, the transferee must meet several conditions.
First, the transferee must qualify as a franchisee, meaning they must meet Afuri Ramen Dumpling's standards for franchisees regarding financial stability, business experience, and other qualifications. Second, the transferee must assume all of the current franchisee's obligations under the existing franchise agreement. This ensures that Afuri Ramen Dumpling's interests are protected and the new franchisee is bound by the same terms and conditions.
Additionally, the transferee must successfully pay for and complete the mandatory training program. This ensures that the new franchisee is properly trained in Afuri Ramen Dumpling's operating procedures and standards. The current franchisee must not be in default of the franchise agreement. Finally, either the current franchisee or the transferee must pay the applicable Transfer Fee to Afuri Ramen Dumpling. These conditions ensure a smooth transition and protect the Afuri Ramen Dumpling brand standards.