Can Afuri Ramen Dumpling designate local advertising coverage areas?
Afuri_Ramen_Dumpling Franchise · 2024 FDDAnswer from 2024 FDD Document
Manual.
Advertising Cooperatives
We have the power to require cooperatives to be formed, changed, dissolved, or merged. We may designate local, regional or national advertising coverage areas to develop cooperative local or regional advertising and promotional programs. We will promptly notify you and our other franchisees, of the establishment, modification and geographical boundaries of regional advertising regions. We may require all franchisees located within each geographic region to meet periodically for the purpose of creating and establishing regional advertising programs. Our company-owned outlets will not be required to participate in or contribute to such regional advertising programs.
If at any meeting of the franchisees in an advertising region, 75% of the franchisees vote to contribute to a regional advertising program, all franchisees within that region will be obligated to make a contribution to a regional advertising fund in the amount established by the vote (the "Regional Advertising Fund"). No advertising region may require any franchisee in that region to make a contribution to a Regional Advertising Fund in excess of 2% of that franchisee's Revenue. At the time a cooperative local or regional advertising or promotional program is developed, we will provide to you a list of all open Afuri franchises within your advertising coverage area.
We will administer each Regional Advertising Fund in the same manner and upon the same terms and conditions as the Advertising Fee outlined in this Item 11. (Franchise Agreement, Section 2.5). There are no other written governing documents that govern any cooperative advertising program. No Regional Advertising Fund will be audited. However, we will prepare annual financial statements that you may obtain upon written request to us.
Your contributions must be paid to the cooperative administrator we designate, when and in the same manner as the Royalty Fee and Advertising Fee payments are paid to us. Please refer to Items 6, 8 and 9 for more information about our advertising programs.
Advisory Council
We may form an Advisory Council, which would be composed of franchisees and our representatives.
Source: Item 11 — Franchisor's Assistance, Advertising, Computer Systems, and Training (FDD pages 27–34)
What This Means (2024 FDD)
According to Afuri Ramen Dumpling's 2024 Franchise Disclosure Document, Afuri Ramen Dumpling has the authority to designate local, regional, or national advertising coverage areas to develop cooperative local or regional advertising and promotional programs. Afuri Ramen Dumpling will notify franchisees of the establishment, modification, and geographical boundaries of regional advertising regions. Afuri Ramen Dumpling may require all franchisees located within each geographic region to meet periodically to establish regional advertising programs. Company-owned outlets are not required to participate in or contribute to such regional advertising programs.
If 75% of the franchisees in an advertising region vote to contribute to a regional advertising program, all franchisees within that region are obligated to contribute to a Regional Advertising Fund. The contribution amount is established by the vote, but cannot exceed 2% of the franchisee's Revenue. Afuri Ramen Dumpling will provide a list of all open Afuri Ramen Dumpling franchises within the franchisee's advertising coverage area when a cooperative local or regional advertising or promotional program is developed.
Afuri Ramen Dumpling will administer each Regional Advertising Fund in the same manner as the Advertising Fee. There are no other written governing documents that govern any cooperative advertising program, and no Regional Advertising Fund will be audited. However, Afuri Ramen Dumpling will prepare annual financial statements that franchisees may obtain upon written request. Contributions must be paid to the cooperative administrator designated by Afuri Ramen Dumpling, when and in the same manner as the Royalty Fee and Advertising Fee payments are paid to Afuri Ramen Dumpling.