What fees must accompany the revenue report from an Afuri Ramen Dumpling franchisee?

According to the 2024 FDD, Afuri Ramen Dumpling franchisees are required to pay both royalty fees and marketing fees monthly. These fees are calculated based on the restaurant's revenue levels. The royalty fees are a percentage of gross sales, while the marketing fees contribute to advertising, market research, and search engine optimization efforts managed by Afuri Ramen Dumpling.

This means that each month, an Afuri Ramen Dumpling franchisee must calculate their gross revenue and remit the specified percentages for both royalty and marketing fees. These payments are in addition to any other potential fees or costs associated with operating the franchise. The franchisee should carefully track revenue and ensure timely payments to avoid potential penalties or breaches of the franchise agreement.

Prospective franchisees should clarify the exact percentages for royalty and marketing fees during their due diligence. Understanding these ongoing costs is crucial for assessing the financial viability of the franchise. Additionally, franchisees should inquire about how the marketing funds are allocated and the strategies employed to support their business. This information will help them evaluate the value they receive in return for the marketing fee contributions.