Can Afuri Ramen Dumpling increase the required insurance coverage amounts periodically?

According to Afuri Ramen Dumpling's 2024 Franchise Disclosure Document, the franchisor has the right to periodically increase the required insurance coverage amounts. Afuri Ramen Dumpling can also require different or additional kinds of insurance at any time. This includes the ability to mandate higher liability limits. These changes can be made to reflect factors such as inflation, the identification of new risks, changes in law or standards of liability, higher damage awards, or other relevant changes in circumstances.

For a prospective franchisee, this means that the initial insurance costs outlined in the FDD are subject to change. The franchisee needs to be prepared for potential increases in insurance premiums over the term of the franchise agreement. It is important to factor in these potential increases when projecting the overall cost of operating an Afuri Ramen Dumpling franchise.

It is typical in franchising for franchisors to retain the right to modify insurance requirements to adapt to changing legal and economic conditions. Franchisees should discuss with Afuri Ramen Dumpling what specific factors might trigger an increase in required coverage and how often these adjustments are typically made. Understanding the potential for these changes is crucial for long-term financial planning as a franchisee.