Is the formation of an Advisory Council mandatory for Afuri Ramen Dumpling?
Afuri_Ramen_Dumpling Franchise · 2024 FDDAnswer from 2024 FDD Document
- 2.5.8 Advisory Council. We have formed, or at our discretion we may choose to form in the future, an Advisory Council. Such Council is or would be composed of franchisees and our representatives. The Council may work with us to improve the System, the products and services offered at franchised restaurants, advertising and promotional campaigns, and other matters. The franchisee representatives may be selected by us or may be selected by a vote of other franchisees in the System. The Council will serve in an advisory capacity only. If you participate on a Council, you will pay any costs you incur related to your participation, such as travel and living expenses to attend Council meetings. We will have the authority to dissolve, change and reform the Council.
Source: Item 23 — Receipts (FDD pages 50–189)
What This Means (2024 FDD)
According to the 2024 Afuri Ramen Dumpling Franchise Disclosure Document, the formation of an Advisory Council is not mandatory. Afuri Ramen Dumpling has either already formed an Advisory Council or may choose to form one in the future at their discretion.
The Advisory Council, if formed, would consist of both franchisees and representatives from Afuri Ramen Dumpling. This council's purpose is to collaborate on improvements to the Afuri Ramen Dumpling system, including the products and services offered at franchised restaurants, advertising and promotional campaigns, and other relevant matters. Franchisee representatives on the council may be selected either by Afuri Ramen Dumpling or through a vote by other franchisees within the system.
The document specifies that the Advisory Council will operate in an advisory capacity only, meaning that while franchisee input is considered, Afuri Ramen Dumpling ultimately retains decision-making authority. If a franchisee participates on the council, they are responsible for covering their own expenses, such as travel and accommodation costs, to attend council meetings. Afuri Ramen Dumpling also retains the right to dissolve, change, and reform the council as it sees fit, highlighting the franchisor's control over its structure and existence.