What costs are included if an Afuri Ramen Dumpling franchisee must reimburse audit costs?
Afuri_Ramen_Dumpling Franchise · 2024 FDDAnswer from 2024 FDD Document
hese inspections, observations and interviews. Despite the foregoing, our reviews and inspections of your operations do not replace your duty to supervise your own business operations and workers.
If any inspection of your Franchised Premises by us or our designee indicates any deficiency or unsatisfactory condition at the Franchised Premises, then we may notify you in writing of the deficiencies and you must promptly correct, remedy or repair such deficiency or unsatisfactory condition. In addition, if any inspection indicates any deficiency or unsatisfactory condition that requires a re-inspection of the Franchised Premises within a period of thirty (30) days, you shall pay us, upon demand, the sum of $500 for each re-inspection of the Franchised Premises and shall, in addition, reimburse us for our out-ofpocket expenses for the re-inspection, including for transportation costs, food, lodging and similar expenses. In addition, you must participate in any quality control programs we establish for the benefit of the Afuri franchise system, such as mystery shopper evaluators. You shall pay the portion we allocate to your fran
Source: Item 23 — Receipts (FDD pages 50–189)
What This Means (2024 FDD)
I am unable to provide information on the costs included if an Afuri Ramen Dumpling franchisee must reimburse audit costs, according to the 2024 Franchise Disclosure Document. The provided excerpts do discuss inspections and re-inspections of the Franchised Premises, stating that if a re-inspection is required within thirty days due to a deficiency, the franchisee must pay $500 for each re-inspection, as well as reimburse out-of-pocket expenses such as transportation, food, and lodging. However, this does not pertain to audit costs.
While the excerpts detail various financial aspects such as initial franchise fees, royalty fees, marketing fees, and related party transactions, they do not specify the conditions under which a franchisee might be subject to an audit or the associated reimbursement costs.
To gain a comprehensive understanding of potential audit-related expenses, a prospective Afuri Ramen Dumpling franchisee should directly inquire with the franchisor about the circumstances that could trigger an audit, the specific costs that the franchisee would be responsible for covering, and any available documentation outlining these obligations.