What events excuse a franchisee from meeting the Development Schedule for Afuri Ramen Dumpling?
Afuri_Ramen_Dumpling Franchise · 2024 FDDAnswer from 2024 FDD Document
ing and mandatory training deadlines set forth in the Franchise Agreements contemporaneously executed with this Addendum.
In the event that you do not comply with the above Franchise opening and continuous operation requirements, we will have the right to terminate any of your franchise agreements representing franchises that have not yet opened for business. Any failure to commence operation caused by a war or civil disturbance, a natural disaster, a labor dispute, shortages or other events beyond your reasonable control (not including financial circumstances) will be excused for a period of time that we deem reasonable under the circumstances.
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- Payment of Initial Franchise Fees. You shall pay the full Initial Franchise Fees for each Franchise at the time you contemporaneously sign the multiple Franchise Agreements. The Initial Franchise Fees are not refundable under any circumstances.
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- Training for First Franchise. We will have no obligation to provide franchise training to you at our expense except for the first Franchise you open.
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- Termination and Expiration. This Addendum will expire at the earlier of the following: (1) the opening of your last Franchise under your Development Schedule; or (2) the termination of this Addendum under to the terms and conditions of this Addendum or the Franchise Agreement.
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's failure to meet the Development Schedule due to specific events will be excused for a period deemed reasonable by the franchisor under the circumstances. These events include war, civil disturbance, natural disasters, labor disputes, and shortages, or other events beyond the franchisee's reasonable control. However, financial circumstances are explicitly excluded from this list of excusable events.
This means that if an Afuri Ramen Dumpling franchisee is unable to open their franchise within the agreed-upon timeframe due to one of the listed events, they may be granted an extension. The franchisor has the discretion to determine what constitutes a reasonable period of time for the extension. It is important to note that this clause protects the franchisee from external events that are genuinely beyond their control, but it does not cover financial difficulties.
For a prospective Afuri Ramen Dumpling franchisee, this clause offers some protection against unforeseen circumstances that could delay the opening of their franchise. However, it is crucial to have sufficient financial resources to avoid delays due to financial constraints, as these are not covered by the excusable events clause. Franchisees should carefully consider potential risks and ensure they have adequate contingency plans in place.
It is also important to note that the franchisor ultimately decides what constitutes a reasonable period of time for an extension. Therefore, franchisees should maintain open communication with Afuri Ramen Dumpling and provide clear documentation of the event causing the delay to ensure a fair assessment of the situation.