What items might Afuri Ramen Dumpling offer for purchase to franchisees?
Afuri_Ramen_Dumpling Franchise · 2024 FDDAnswer from 2024 FDD Document
- A.
Remove all Franchise-related equipment, furnishings, and inventory from the
Franchise location;
- B. Sell the equipment and inventory to us, at fair market value for equipment and furnishings and at your invoice cost for inventory less a 10% restocking charge. We will not be liable for payment to you for intangibles, including goodwill;
Source: Item 23 — Receipts (FDD pages 50–189)
What This Means (2024 FDD)
According to Afuri Ramen Dumpling's 2024 Franchise Disclosure Document, in the event of termination, Afuri Ramen Dumpling may require the franchisee to sell certain items back to the company. These include equipment, furnishings, and inventory.
Specifically, Afuri Ramen Dumpling will purchase the equipment and furnishings at fair market value. The inventory will be purchased at the franchisee's invoice cost, less a 10% restocking charge. This arrangement ensures that Afuri Ramen Dumpling can maintain brand consistency and operational standards across all franchise locations, even after a franchise agreement ends.
This buy-back provision is a fairly standard practice in franchising. It allows the franchisor to control the disposition of branded assets and prevent them from being used in a way that could harm the brand. For a prospective Afuri Ramen Dumpling franchisee, this means understanding that upon termination, they may be required to sell these assets back to the company under the terms outlined in the franchise agreement.