Is the initial training program included in the initial franchise fee for Afuri Ramen Dumpling?
Afuri_Ramen_Dumpling Franchise · 2024 FDDAnswer from 2024 FDD Document
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Notes:
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- Initial Franchise Fees. The Initial Franchise Fee is $45,000 and is payable upon signing the Franchise Agreement. It is reduced to $30,000 for your second and each additional franchise you purchase. The initial training program is included in the Initial Franchise Fee for your owners and your General Manager, Kitchen Manager, Bar Manager, and Commissary Manager. You will be responsible for your expenses that you incur associated with the training (e.g. transportation, meals, and lodging).
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- Rent and Security Deposit. You must lease appropriate space if you do not own adequate space. Typically, the Franchise Premises for your first location with a commissary kitchen will be approximately 2,500 to 4,000 square feet. The first table above is based on this type of location. Typically, the Franchise Premises for each additional location serviced by your commissary kitchen will be approximately 1,500 to 2,000 square feet. The second table above is based on this type of location.
Source: Item 7 — Estimated Initial Investment (FDD pages 16–22)
What This Means (2024 FDD)
According to the 2024 Afuri Ramen Dumpling Franchise Disclosure Document, the initial training program is included in the initial franchise fee for the first franchise. This covers training for the owners, General Manager, Kitchen Manager, Bar Manager, and Commissary Manager. However, franchisees are responsible for covering their own expenses associated with the training, such as transportation, meals, and lodging.
For a single Afuri Ramen Dumpling franchise, the initial franchise fee is $45,000. If a franchisee purchases multiple franchises, the initial franchise fee is reduced to $30,000 for the second and each additional franchise. The inclusion of the initial training program in the franchise fee can be a significant benefit, as it reduces the upfront costs associated with starting the franchise.
Prospective Afuri Ramen Dumpling franchisees should carefully consider the out-of-pocket expenses associated with the training program, as these costs are not covered by the initial franchise fee. These expenses, estimated between $6,000 to $10,000, must be factored into the overall initial investment. Additionally, franchisees should be aware that Afuri Ramen Dumpling is only obligated to provide initial training at their expense for the first franchise.