Does the initial franchise fee for Afuri Ramen Dumpling include required training costs?
Afuri_Ramen_Dumpling Franchise · 2024 FDDAnswer from 2024 FDD Document
the financial statements were available to be issued.
NOTE 3 - FRANCHISING
The Company executes franchise agreements that set the terms of its arrangements with each franchisee. The franchise agreements typically require the franchisee to pay an initial, non-refundable fee of $45,000, which includes required training costs. The franchise agreements also require the franchisee to pay monthly royalty fees based on revenue levels. The franchisee pays marketing fees monthly to cover advertising, market research, and search engine optimization. Subject to the Company's approval and payment of a renewal fee, a franchisee may generally renew its agreement upon expiration. Direct costs of sales and servicing of franchise agreements are charged to operating expenses as incurred.
When an individual franchise is sold, the Company agrees to license the Afuri name to the franchisee, provide site selection criteria and design plans for the restaurant, assist in developing the restaurant and implementing the g
Source: Item 23 — Receipts (FDD pages 50–189)
What This Means (2024 FDD)
According to Afuri Ramen Dumpling's 2024 Franchise Disclosure Document, the initial franchise fee of $45,000 includes required training costs. This fee is non-refundable. This means that a portion of the initial franchise fee is allocated to training revenue, which Afuri Ramen Dumpling recognizes upon the franchise opening for business.
Afuri Ramen Dumpling provides a mandatory training course for the franchisee (or owners if the franchisee is an entity) and their General Manager, Kitchen Manager, Bar Manager, and Commissary Manager at its headquarters, which is currently in Portland, Oregon. The individual owner(s) and General Manager must also attend the training for the Kitchen Manager, Bar Manager and Commissary Manager. The training course covers various aspects of the operation of the Afuri Ramen Dumpling franchise, including financial controls, marketing techniques, service methods, and maintenance of quality standards.
However, franchisees should note that while the initial franchise fee covers the mandatory training program, they are responsible for the transportation, board, and lodging expenses incurred by themselves and their managers related to this training. Franchisees are also responsible for the costs of computer equipment and internet services needed to participate in training. For additional franchises, on-site assistance is included in the Initial Franchise Fee only for the first franchise. For additional franchises, Afuri Ramen Dumpling will provide on-site assistance if they deem it necessary or upon the franchisee's request (subject to their availability) at their then-current training fees, and the franchisee will also be responsible for out-of-pocket costs for transportation, meals and lodging.