What is the franchisee responsible for regarding site selection for the Afuri Ramen Dumpling franchise premises?
Afuri_Ramen_Dumpling Franchise · 2024 FDDAnswer from 2024 FDD Document
- 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.
1.3 Assistance in Site Location.
You must ensure that the site you select complies with these requirements.
- 1.3.5 You acknowledge and agree that any location we select or approve, and any lease we approve will be with the understanding that it meets our minimum acceptable criteria based upon our general business experience.
The location for the Franchise Premises must meet our minimum square footage and other standards outlined in our Operations Manual.
You acknowledge that you are responsible for reviewing and determining the appropriateness and desirability of the lease.
We will have no liability with respect to the selection or approval of a location or any lease for the Premises, nor liability with respect to any site recommendations we make.
- 1.3.6 Before you enter a lease or purchase agreement for the Franchise Premises, you will submit the lease or purchase documents to us for approval.
Lease documents must include the Franchise Premises Lease Agreement Rider attached in Exhibit 2 or otherwise include an assignment of the lease in a form we approve, pursuant to which we may assume the lease as provided in Exhibit 2.
You will deliver to us a true copy of the lease and any additions or amendments to it promptly after they are executed.
1.3.7 If we cure any breach by you under the lease or sublease, the total amount of all costs and payments we incur in effecting the cure will be immediately due and owing by you to us.
1.4 Franchise Development.
You will be responsible to furnish and equip the Franchise.
- 1.4.1 We will furnish to you a schedule of equipment packages for the Franchise.
Any modifications you propose must be approved in writing by us.
All approvals will be solely within our discretion to maintain a uniform image consistent with Afuri franchise system concepts.
- 1.4.2 You will comply with the standards and specifications we establish for design, layout, equipment, and furnishings, among other things.
Modifications or variations require our prior written consent.
1.4.3 You will comply within a time we deem reasonable with any requirement we impose to modify the layout, furnishings, and equipment.
1.4.4 All equipment will conform to our equipment specifications.
We may require reasonable changes in or additions to equipment .
Source: Item 23 — Receipts (FDD pages 50–189)
What This Means (2024 FDD)
According to the 2024 Afuri Ramen Dumpling Franchise Disclosure Document, the franchisee is primarily responsible for selecting the site for their franchise premises within a designated search area, if the location isn't already determined when the agreement is executed. The selected site must meet Afuri Ramen Dumpling's minimum square footage and other standards as outlined in their Operations Manual.
While Afuri Ramen Dumpling may offer assistance in site location, the franchisee is ultimately responsible for reviewing and determining the suitability and desirability of the lease. This includes ensuring the site complies with all requirements set forth by Afuri Ramen Dumpling. The franchisee must submit the lease or purchase documents to Afuri Ramen Dumpling for approval before entering into any agreement. Lease documents must include a specific rider or an assignment of the lease that allows Afuri Ramen Dumpling to assume the lease under certain conditions.
Afuri Ramen Dumpling explicitly states that they will have no liability regarding the selection or approval of a location or any lease for the premises, nor any liability for site recommendations they provide. Furthermore, if Afuri Ramen Dumpling has to cure any breach of the lease by the franchisee, the franchisee is responsible for immediately paying all costs and payments incurred by Afuri Ramen Dumpling in effecting the cure.
In addition to site selection, the franchisee is responsible for furnishing and equipping the franchise according to Afuri Ramen Dumpling's standards and specifications for design, layout, equipment, and furnishings. Any proposed modifications must be approved in writing by Afuri Ramen Dumpling, and the franchisee must comply with any requirements to modify the layout, furnishings, and equipment within a reasonable timeframe. The franchisee must also use Afuri Ramen Dumpling's designated architect for the general project concept and schematics, though they may use a local architect for detailed construction blueprints with prior approval.