Is an Afuri Ramen Dumpling franchisee allowed to operate the franchise at a location other than the Franchise Premises?
Afuri_Ramen_Dumpling Franchise · 2024 FDDAnswer from 2024 FDD Document
- 1.1.4 Co-Branding. Some Afuri franchises may be placed at a location where another, separate business is operated under another business name. If the Franchise Premises is at that type of location, it will be deemed "co-branded" for the purposes of this Agreement. If the Franchise Premises is located in a co-branded location, the exact basis and calculation of Revenue will follow the requirements and procedures we outline in the Operations Manual. If the Franchise Premises is in a co-branded location, you will obtain and keep, or make arrangements for us to have access to, a complete and accurate set of books and records of the operation of all businesses operated at and all business done through the cobranded location, although Revenue will be limited to Afuri related receipts. If the Franchise Premises is located in a co-branded location, we may enter upon the Franchise Premises at reasonable times to interview co-branded partners and to inspect and copy any books, records and documents related to the co-branded location in order to verify your compliance with the terms of the Franchise Agreement. The Operations Manual may contain additional information about co-branded locations.
- 1.2 One Location for Franchise. You will operate the Franchise only at the Franchise Premises. If not determined when this Agreement is executed, you are responsible for selecting the site for the Franchise Premises within the search area ("Search Area") outlined in Exhibit 1 and in accordance with this Agreement.
Source: Item 23 — Receipts (FDD pages 50–189)
What This Means (2024 FDD)
According to the 2024 Afuri Ramen Dumpling Franchise Disclosure Document, franchisees are generally required to operate their franchise solely at the designated Franchise Premises. However, there is an exception for co-branded locations, where an Afuri Ramen Dumpling franchise may be situated within a location that hosts another separate business operating under a different name. In such cases, the franchisee must maintain accurate records for all businesses at the co-branded location, though revenue calculation is limited to Afuri-related receipts.
For franchisees considering a co-branded location, Afuri Ramen Dumpling retains the right to access and inspect the financial records of all businesses operating at the co-branded site to ensure compliance with the franchise agreement. The franchisor may also interview co-branded partners. The Operations Manual provides further details regarding the specifics and requirements for co-branded locations.
This policy ensures that Afuri Ramen Dumpling maintains control over its brand and operational standards, even in co-branded arrangements. Prospective franchisees should carefully review the Operations Manual and discuss any co-branding opportunities with Afuri Ramen Dumpling to fully understand the implications and requirements.