What debts must an Afuri Ramen Dumpling franchisee pay before transferring the franchise?
Afuri_Ramen_Dumpling Franchise · 2024 FDDAnswer from 2024 FDD Document
that there are many subjective factors that comprise the process by which we select a suitable franchise owner. Our consent to a transfer by you will remain a subjective determination and will include, but not be limited to the following conditions. Before the effective date of a transfer we approve:
- A. The transferee must assume your Franchise obligations. You will remain bound by your covenants in this Agreement to not disclose Confidential Information and to not compete with us or our franchisees.
- B. You will pay all ascertained or liquidated debts concerning the Franchise.
- C. You may not be in breach of this Agreement or any other agreement between the parties. Our consent to the transfer will not constitute a waiver of any claims we may have against you.
- D.
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 must pay all ascertained or liquidated debts concerning the franchise before an approved transfer can take effect. This means that any debts that are clearly determined or those that have been converted to a fixed sum must be settled.
This requirement ensures that Afuri Ramen Dumpling maintains financial integrity and that the incoming franchisee is not burdened with the previous owner's financial obligations. It also protects the brand's reputation by ensuring that franchise locations operate without outstanding debts.
In addition to settling debts, the franchisee must not be in breach of the Franchise Agreement or any other agreements with Afuri Ramen Dumpling. The transferee must also assume all franchise obligations, complete the required training programs to Afuri Ramen Dumpling's satisfaction, and pay a transfer fee based on the then-current Transfer Fee Schedule to cover legal, accounting, and credit check costs.