What is the initial franchise fee for an Afuri Ramen Dumpling franchise?
Afuri_Ramen_Dumpling Franchise · 2024 FDDAnswer from 2024 FDD Document
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2 PAYMENT OF FEES AND OTHER FINANCIAL REQUIREMENTS
2.1 Initial Franchise Fee. The Initial Franchise Fee is $45,000. Contemporaneously with the execution of this Agreement, you have paid to us the entire Initial Franchise Fee. The Initial Franchise Fee is paid in consideration of our sales expenses, administrative overhead, return on investment, and start-up costs related to the execution of this Agreement and the opening of the Franchise and for our lost or deferred o
Source: Item 5 — Initial Fees (FDD pages 10–11)
What This Means (2024 FDD)
According to the 2024 Afuri Ramen Dumpling Franchise Disclosure Document, the initial franchise fee is $45,000. This fee is due when the Franchise Agreement is executed. The FDD specifies that this initial fee compensates Afuri Ramen Dumpling for sales expenses, administrative overhead, return on investment, startup costs, and the lost opportunity to sell the franchise to someone else in the designated territory.
This initial franchise fee is generally non-refundable, with exceptions noted in Section 3.1 of the agreement. This means that under most circumstances, if the franchisee decides not to proceed with opening the Afuri Ramen Dumpling restaurant, the $45,000 will not be returned.
It is common practice in the franchise industry for the initial franchise fee to be non-refundable, as it covers the franchisor's initial costs and efforts in awarding the franchise. Prospective Afuri Ramen Dumpling franchisees should carefully consider this non-refundable aspect and ensure they are fully committed before signing the Franchise Agreement and paying the fee.