What expenses related to training are the franchisee responsible for when opening an Afuri Ramen Dumpling franchise?
Afuri_Ramen_Dumpling Franchise · 2024 FDDAnswer from 2024 FDD Document
team.
Notes:
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- Initial Franchise Fees. The Initial Franchise Fee is $45,000 and is payable upon signing the Franchise Agreement. It is reduced to $30,000 for your second and each additional franchise you purchase. The initial training program is included in the Initial Franchise Fee for your owners and your General Manager, Kitchen Manager, Bar Manager, and Commissary Manager. You will be responsible for your expenses that you incur associated with the training (e.g. transportation, meals, and lodging).
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- Rent and Security Deposit. You must lease appropriate space if you do not own adequate space. Typically, the Franchise Premises for your first location with a commissary kitchen will be approximately 2,500 to 4,000 square feet. The first table above is based on this type of location.
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, while the initial training program is included in the Initial Franchise Fee for owners, General Manager, Kitchen Manager, Bar Manager, and Commissary Manager, franchisees are responsible for covering certain expenses associated with the training. These out-of-pocket expenses include transportation, meals, and lodging for the personnel attending the training. The FDD estimates these out-of-pocket training expenses to be between $6,000 and $10,000, payable as incurred during the training period to airlines, hotels, restaurants, and similar vendors.
This means that while Afuri Ramen Dumpling covers the cost of the training program itself, franchisees must budget for and pay for the travel and living expenses of their key personnel during the training period. This is a fairly standard practice in the franchise industry, as it allows the franchisor to control the quality of the training while shifting the direct costs of attending the training to the franchisee.
Prospective Afuri Ramen Dumpling franchisees should carefully consider these costs when evaluating the overall investment required to start the franchise. It's important to factor in the number of personnel who will require training, the distance they will need to travel, and the cost of accommodation and food in the training location. These expenses can add a significant amount to the initial investment, so it's crucial to plan accordingly.