Is the initial training included in the Initial Franchise Fee for all Afuri Ramen Dumpling franchises?
Afuri_Ramen_Dumpling Franchise · 2024 FDDAnswer from 2024 FDD Document
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.
We will provide the services of a trainer on-site at your Franchise Premises for approximately 14 days in conjunction with your Franchise's opening (approximately seven days before and seven days after opening). If this Agreement relates to your purchase of an operational franchise from an existing franchisee, then the duration of this on-site assistance will be approximately one week. This on-site assistance is included in the Initial Franchise Fee only for your first franchise. For additional franchises, we will provide this on-site assistance if we deem it necessary or upon your request (subject to our availability) at our then-current training fees. For additional franchises, you will also be responsible for our out-of-pocket costs for transportation, meals and lodging.
Each manager you hire must complete the mandatory training program within one month after being hired. You will bear all costs of the training, including a reasonable training fee at our thencurrent rates. Each of your employees will complete a training program under the direction of you or your designated manager who has successfully completed our mandatory training course.
You will participate in and pay for the costs of training, including costs of computer equipment and internet services needed to participate.
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 means that for the first franchise an Afuri Ramen Dumpling franchisee opens, the initial training is covered by the initial franchise fee. This training is mandatory, and if the franchisee or their manager fails to complete it satisfactorily, Afuri Ramen Dumpling can terminate the franchise agreement, and the franchisee will be responsible for any costs incurred.
However, this inclusion of training in the initial franchise fee applies only to the first franchise location. For any subsequent Afuri Ramen Dumpling franchises, on-site assistance from a trainer is provided at the discretion of Afuri Ramen Dumpling or upon the franchisee's request, subject to the franchisor's availability. In these cases, the franchisee is responsible for the then-current training fees, as well as covering the trainer's transportation, meals, and lodging expenses.
Furthermore, the franchisee is responsible for the costs associated with training their managers and employees. Each manager must complete the mandatory training program within one month of being hired, and the franchisee bears all costs, including a reasonable training fee. All employees must also complete a training program under the direction of the franchisee or a designated manager who has successfully completed the mandatory training course. The franchisee is also responsible for the costs of computer equipment and internet services needed to participate in training.
In summary, while the initial franchise fee for the first Afuri Ramen Dumpling franchise includes the cost of mandatory training for the franchisee and their manager, franchisees should be aware of the additional training-related expenses for subsequent franchises, managers, and employees. These costs can include training fees, travel, lodging, meals, and equipment, which can significantly impact the overall investment.