To whom is the initial franchise fee paid when opening an Afuri Ramen Dumpling franchise?
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 | ||||
| – 3 months2 |
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 paid directly to the franchisor, referred to as "Us" in the document. The initial franchise fee for a single franchise is $45,000, payable in cash, via certified check, or through wire transfer upon the execution of the Franchise Agreement.
For franchisees purchasing multiple Afuri Ramen Dumpling franchises, the initial fee structure changes. The initial franchise fee for the first franchise remains $45,000, but the fee is reduced to $30,000 for the second and each subsequent franchise purchased. This reduced fee for multiple franchises is also paid to Afuri Ramen Dumpling at the time of signing the Franchise Agreement.
In addition to the initial franchise fee, prospective Afuri Ramen Dumpling franchisees should be aware of other payments they will need to make to third-party suppliers and vendors. These include rent and security deposits paid to the landlord, pre-construction costs paid to suppliers and government agencies, and construction and remodeling costs paid to vendors or contractors.