When is the initial franchise fee due to be paid to Afuri Ramen Dumpling?
Afuri_Ramen_Dumpling Franchise · 2024 FDDAnswer from 2024 FDD Document
| Type of Expenditure | Amount | Method of Payment | When Due | To Whom Payment is Made |
|---|---|---|---|---|
| Initial Franchise Fee1 | $45,000 | Cash, Certified Check or Wire Transfer | Upon execution of the Franchise Agreement | Us |
| Rent and Security | Varies | As Incurred | As Incurred | Landlord |
| Deposit |
Source: Item 7 — Estimated Initial Investment (FDD pages 16–22)
What This Means (2024 FDD)
According to Afuri Ramen Dumpling's 2024 Franchise Disclosure Document, the initial franchise fee is due upon the signing of the Franchise Agreement. For a first single unit franchise, this fee is $45,000. If a franchisee purchases multiple franchises, the initial franchise fee for the first franchise remains $45,000, but the fee is reduced to $30,000 for each additional franchise.
This means that a prospective Afuri Ramen Dumpling franchisee must be prepared to pay the initial franchise fee at the time they formally agree to the terms of the franchise agreement. This upfront payment secures the franchisee's right to operate an Afuri Ramen Dumpling location and gain access to the franchisor's system, training, and support.
It is important for potential franchisees to carefully review the franchise agreement and understand all the terms and conditions before signing, as the initial franchise fee is generally non-refundable, as stated in Item 5 of the FDD. Understanding when the fee is due and the implications of signing the agreement is a crucial step in the due diligence process.