Can an Afuri Ramen Dumpling franchisee obtain an accounting of the Advertising Fees and expenditures?
Afuri_Ramen_Dumpling Franchise · 2024 FDDAnswer from 2024 FDD Document
The Advertising Fees are administered by us. The Advertising Fees are not audited. You may obtain an accounting of the Advertising Fees and expenditures upon written request to us.
Source: Item 11 — Franchisor's Assistance, Advertising, Computer Systems, and Training (FDD pages 27–34)
What This Means (2024 FDD)
According to Afuri Ramen Dumpling's 2024 Franchise Disclosure Document, franchisees can request an accounting of the Advertising Fees and expenditures. This accounting can be obtained by submitting a written request to Afuri Ramen Dumpling. The FDD also states that the Advertising Fees are administered by Afuri Ramen Dumpling and are not audited.
This means that while Afuri Ramen Dumpling franchisees have the right to request an accounting of how the advertising fees are spent, the provided FDD excerpts do not specify the level of detail or the format in which this accounting will be provided. The lack of an audit raises concerns about the transparency and accuracy of the reported expenditures.
It is important for prospective Afuri Ramen Dumpling franchisees to understand the limitations of this accounting and to consider asking the franchisor for more detailed information about the advertising fund's management and expenditure reporting practices during their due diligence. This will help them make an informed decision about investing in the franchise.