What expenses are included in the retraining programs that Afuri Ramen Dumpling franchisees must cover during renewal?

Based on the 2024 Afuri Ramen Dumpling Franchise Disclosure Document, the franchisor's financial statement notes mention franchisee training costs. Specifically, Note 4 details related party transactions, stating that management fees include franchisee training, among other expenses. However, this note refers to overall franchisee training expenses incurred by the company, not specifically the costs a franchisee would incur for retraining programs during renewal.

While the document mentions that franchisees may renew their franchise agreement for additional 10-year terms if they are not in breach of the agreement, it does not explicitly detail the costs associated with retraining programs during the renewal process. The FDD states that upon renewal, franchisees must execute the then-current Franchise Agreement forms, which may vary materially from the original agreement, and that Royalty Fees, Advertising Fees, and other fees will be set at the then prevailing rates and terms.

Therefore, the FDD does not provide a comprehensive breakdown of the expenses a franchisee might incur for retraining programs during renewal. A prospective Afuri Ramen Dumpling franchisee should seek clarification from the franchisor regarding specific retraining requirements and associated costs during the renewal process to fully understand the financial implications.