What is the Afuri Ramen Dumpling franchisee's obligation regarding the use of equipment?
Afuri_Ramen_Dumpling Franchise · 2024 FDDAnswer from 2024 FDD Document
- A.
Remove all Franchise-related equipment, furnishings, and inventory from the
Franchise location;
- B. Sell the equipment and inventory to us, at fair market value for equipment and furnishings and at your invoice cost for inventory less a 10% restocking charge. We will not be liable for payment to you for intangibles, including goodwill;
we reserve the right, at our discretion, to accommodate your special needs, or those of any other of our franchisees. These needs may result from the peculiarities of a particular site or location, density of population, business potential, populations of trade area, existing business practices, requirements of local law or local customers, landlord requirements, or any other condition which we deem to be important to the successful operation of the franchisee's business. We may allow certain franchisees to depart from normal system standards and routines to experiment with or test new products, equipment, designs, and procedures. In no event will any variance or testing be deemed a waiver of any of our rights, or an excuse for you to not perform any of your duties under this Agreement. We may require you at any time to commence full compliance with the Operations Manual and the System. We will not be required to grant any variance to you under any circumstances. You will not require us to disclose or grant to you a like or similar variation.
Source: Item 23 — Receipts (FDD pages 50–189)
What This Means (2024 FDD)
The 2024 Franchise Disclosure Document does not explicitly state the Afuri Ramen Dumpling franchisee's obligation regarding the use of equipment. However, it does state that upon termination of the franchise agreement, the franchisee must remove all Franchise-related equipment, furnishings, and inventory from the Franchise location. The franchisee can either sell the equipment and inventory to Afuri Ramen Dumpling at fair market value for equipment and furnishings and at the franchisee's invoice cost for inventory less a 10% restocking charge, or the franchisee can sell to Afuri Ramen Dumpling their interest in the Franchise, the Franchise Premises, if any, and all related equipment, fixtures, signs, real estate leases, equipment leases and personal property.
Also, Afuri Ramen Dumpling may allow certain franchisees to depart from normal system standards and routines to experiment with or test new products, equipment, designs, and procedures. However, Afuri Ramen Dumpling is not required to grant any variance to the franchisee under any circumstances, and the franchisee will not require Afuri Ramen Dumpling to disclose or grant to them a like or similar variation.
To fully understand the franchisee's obligations regarding equipment, a prospective franchisee should ask Afuri Ramen Dumpling about the specific requirements for equipment purchases, maintenance, and approved vendors. This information is typically detailed in the operations manual, which the FDD references but does not fully disclose.