What is the estimated range for initial inventory costs for an Afuri Ramen Dumpling franchise?
Afuri_Ramen_Dumpling Franchise · 2024 FDDAnswer from 2024 FDD Document
| Type of Expenditure | Amount | Method of Payment | When Due | To Whom Payment is Made |
|---|---|---|---|---|
| Initial Inventory7 | $6,000 to $10,000 | As Incurred | As Incurred (Before Opening) | Suppliers |
| Signage8 | $7,000 to $15,000 | As Incurred | Before Opening | Suppliers |
| Wages for Employees - 3 months | $150,000 to $240,000 ($50,000 to $80,000 per month) | As Incurred | As Incurred | Employees |
| Out-of-Pocket Expenses During Training9 | $6,000 to $10,000 | As Incurred | During Training | Airlines, Hotels, Restaurants, etc. |
| Grand Opening | $1,000 to $2,000 | As Incurred | Before and After | Suppliers |
| Advertising10 | Opening | |||
| Liquor License (if | $4,000 to $30,000 | As Incurred | Before Opening | |
| available in your | ||||
| jurisdiction) | ||||
| Professional Fees | $2,500 to $10,000 | As Incurred | As Incurred | Professionals (such as Accountant or Lawyer) |
| Insurance – One | $3,500 to $7,000 | As Incurred | Before Opening | Insurers |
| Year | ||||
| Miscellaneous | $50,000 to | As Incurred | As Incurred | Suppliers, |
| Opening Costs | $120,000 | Utilities, etc. | ||
| Additional Funds – 3 months11 | $10,000 to $30,000 | As Incurred | As Incurred | Employees, Suppliers, Utilities, etc. |
| TOTAL12 | $591,000 to $1,153,000 |
Source: Item 7 — Estimated Initial Investment (FDD pages 16–22)
What This Means (2024 FDD)
According to Afuri Ramen Dumpling's 2024 Franchise Disclosure Document, the estimated initial inventory costs for a first single unit franchise range from $6,000 to $10,000. These costs are to be paid to suppliers as incurred, before opening the franchise location.
For a second or additional single unit Afuri Ramen Dumpling franchise, the estimated initial inventory costs range from $3,000 to $7,000. As with the first franchise, these costs are paid to suppliers as incurred, before opening.
These figures represent an estimate. Actual inventory costs may vary depending on factors such as the size of the location, menu variations, and supply chain efficiencies. It is important for prospective franchisees to carefully consider these estimates and discuss them with existing franchisees and the franchisor to gain a more accurate understanding of potential inventory expenses.