What factors does Afuri Ramen Dumpling consider when determining whether to approve a transfer?
Afuri_Ramen_Dumpling Franchise · 2024 FDDAnswer from 2024 FDD Document
e believe based upon a review of the transferee's operational and business plans that the transferee's business operations might not be beneficial on a cash flow or financial basis.
- 7.1.3 We need not consent to any transfer to a competitor of ours.
- 7.1.4 We enter this Agreement, in part, in reliance upon the individual or collective character, skill, attitude, business ability and financial capacity of you (or your shareholders, members or partners, if you are a corporation, limited liability company, partnership or other entity).
- 7.1.5 You recognize that there are many subjective factors that comprise the process by which we select a suitable franchise owner. Our consent to a transfer by you will remain a subjective determination and will include, but not be limited to the following conditions. Before the effective date of a transfer we approve:
- A. The transferee must assume your Franchise obligations. You will remain bound by your covenants in this Agreement to not disclose Confidential Information and to not compete with us or our franchisees.
- B. You will pay all ascertained or liquidated debts concerning the Franchise.
- C. You may not be in breach of this Agreement or any other agreement between the parties. Our consent to the transfer will not constitute a waiver of any claims we may have against you.
- D. The transferee will pay for and complete to our exclusive satisfaction the training programs we then require of new franchisees or otherwise show to our satisfaction sufficient ability to successfully operate the Franchise.
- E. You or the transferee will pay a Transfer Fee according to our then-current Transfer Fee Schedule.
Source: Item 23 — Receipts (FDD pages 50–189)
What This Means (2024 FDD)
According to the 2024 Afuri Ramen Dumpling Franchise Disclosure Document, Afuri Ramen Dumpling relies on the individual or collective character, skill, attitude, business ability, and financial capacity of the franchisee (or their shareholders, members, or partners) when deciding whether to approve a transfer. The document states that the consent to a transfer remains a subjective determination.
Before the transfer can be effective, the transferee must assume all of the franchisee's obligations. The franchisee will remain bound by the agreement to not disclose confidential information and to not compete with Afuri Ramen Dumpling or its franchisees. The franchisee must also pay all debts related to the franchise and cannot be in breach of the Franchise Agreement or any other agreement with Afuri Ramen Dumpling.
The transferee is required to pay for and complete the training programs that Afuri Ramen Dumpling requires of new franchisees, or otherwise demonstrate the ability to successfully operate the franchise. Either the franchisee or the transferee must pay a transfer fee based on Afuri Ramen Dumpling's current Transfer Fee Schedule. This fee is used to cover the reasonable legal, accounting, credit check, and investigation expenses that result from the transfer, as well as the mandatory training program.