Are the Afuri Ramen Dumpling financial statements consolidated or individual?

According to the 2024 FDD, the financial statements provided for Afuri Ramen Dumpling are consolidated with its stockholder, Afuri USA Inc. Specifically, the document states that Afuri Franchise, Inc. files a consolidated federal income tax return with Afuri USA Inc. There is no agreement for Afuri Franchise, Inc. to reimburse the stockholder for any tax incurred.

For a prospective franchisee, this means the financial performance represented reflects the larger corporate entity rather than solely the franchise operations. This is a common practice, as many franchisors are part of larger corporate structures. However, it is important to understand how the franchisor's performance integrates within the consolidated financials.

It is important for a potential Afuri Ramen Dumpling franchisee to recognize that the financial health of the parent company, Afuri USA Inc., could impact the franchise system. While the FDD provides these consolidated statements, a franchisee might want to inquire about the financial performance of Afuri Franchise, Inc. specifically, to better understand the franchise's contribution to the overall company's financial picture. Understanding the relationship between the franchisor and its parent company can provide a more comprehensive view of the financial stability and operational strategy of Afuri Ramen Dumpling.