How must the initial franchise fee for an Afuri Ramen Dumpling franchise be paid?
Afuri_Ramen_Dumpling Franchise · 2024 FDDAnswer from 2024 FDD Document
nit Franchise)**
| 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 | | | | | | – 3 months2 | | | | | | Pre-Construction Costs (Architect, Plans, Permits)3 | $11,000 to $30,000 | As Incurred | As Incurred | Suppliers, Government Agencies | | Construction, Remodeling and Leasehold Improvements4 | $200,000 to $400,000 | As Arranged | As Incurred | Vendors or Contractors | | Point of Sale | $5,000 to $20,000 | As Incurred | As Incurred | Suppliers | | System | | | | | | (Initial Payment)5 | | | | | | Equipment, Fixtures, Furnishings, Décor, and Supplies6 | $90,000 to $180,000 | As Incurred | Before Opening | Suppliers |
| Type of Expenditure | Amount | Method of Payment | When Due | To Whom Payment is Made | |-
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 for a single unit is $45,000. For a second or additional single-unit franchise, the initial franchise fee is $30,000. The acceptable methods of payment are cash, certified check, or wire transfer. This fee is due upon the execution of the Franchise Agreement and is to be paid directly to Afuri Ramen Dumpling.
For franchisees purchasing multiple franchises, the initial franchise fee for the first franchise is $45,000, and the fee for each additional franchise is reduced to $30,000. This fee structure incentivizes franchisees to expand their operations with Afuri Ramen Dumpling.
It is important to note that these fees are generally non-refundable, as stated in Item 5 of the FDD, so prospective franchisees should carefully consider their decision before signing the Franchise Agreement and remitting payment. This is a common practice in franchising, as the initial fee covers the franchisor's initial costs of setting up the franchisee and granting them the rights to operate under the brand.