For Afuri Ramen Dumpling, what is the duration of each renewal franchise term?
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.
Source: Item 23 — Receipts (FDD pages 50–189)
What This Means (2024 FDD)
According to Afuri Ramen Dumpling's 2024 Franchise Disclosure Document, franchisees who are not in breach of their agreement have the option to renew their franchise for subsequent terms of 10 years. These renewals are subject to the terms and conditions outlined in Afuri Ramen Dumpling's then-current Franchise Agreement forms, which may differ significantly from the original agreement.
Upon renewal, certain fees such as Royalty Fees and Advertising Fees will be set at the prevailing rates and terms at the time of renewal. Additionally, the Franchise Territory may be modified to align with Afuri Ramen Dumpling's current market penetration and demographic standards. This means the territory could be reduced or expanded.
To initiate the renewal process, franchisees must execute the renewal Franchise Agreement forms within 30 days of receiving them. Failure to do so may be interpreted as an election not to renew the franchise. This clause highlights the importance of franchisees staying compliant with the franchise agreement and being prepared to adapt to potential changes in terms and territory upon renewal.