What happens to unpaid training fees if the Afuri Ramen Dumpling agreement is terminated?
Afuri_Ramen_Dumpling Franchise · 2024 FDDAnswer from 2024 FDD Document
Termination will be effective upon the non-breaching party delivering written notice to the breaching party of termination for failure to cure within the allowed period. Upon termination or expiration of this Agreement for any reason, (1) Franchisee will still be liable to Franchisor for any earned but unpaid training fees at the time of termination and any incurred but not yet reimbursed training costs at the time of termination, per Section 2 above; and (2) Franchisor will promptly refund to Franchisee a pro rata portion of any advance payments for training fees that are not yet earned at the time of termination and any training costs that are not yet incurred at the time of termination. Certain sections of this Agreement by their nature survive the expiration or termination of this Agreement, including sections pertaining to indemnification, limitation of liability, and dispute resolution.
Source: Item 23 — Receipts (FDD pages 50–189)
What This Means (2024 FDD)
According to the 2024 Afuri Ramen Dumpling Franchise Disclosure Document, if the franchise agreement is terminated or expires, the franchisee is liable to Afuri Ramen Dumpling for any earned but unpaid training fees and any incurred but not yet reimbursed training costs at the time of termination. This means that even after the agreement ends, the franchisee is still responsible for covering these outstanding training-related expenses.
Conversely, Afuri Ramen Dumpling will refund to the franchisee a pro rata portion of any advance payments for training fees that were not yet earned at the time of termination, as well as any training costs that were not yet incurred. This indicates that the franchisee may receive a refund for training services that were paid for in advance but not fully utilized before the termination date. The refund is calculated proportionally based on the extent to which the training was not completed.
This policy ensures that Afuri Ramen Dumpling is compensated for the training they have provided, while also providing a fair return to the franchisee for any unused training funds. It is important for prospective franchisees to understand these terms regarding training fees and costs in the event of early termination, as these costs can impact the overall financial obligations of the franchise agreement.