What must Afuri Ramen Dumpling lease documents include?

According to Afuri Ramen Dumpling's 2024 Franchise Disclosure Document, before a franchisee enters into a lease or purchase agreement for the franchise premises, they must submit the lease or purchase documents to Afuri Ramen Dumpling for approval. The lease documents must include the Franchise Premises Lease Agreement Rider attached as Exhibit 2 in the FDD. Alternatively, the lease documents must include an assignment of the lease in a form approved by Afuri Ramen Dumpling, which allows Afuri Ramen Dumpling to assume the lease as detailed in Exhibit 2.

This requirement ensures that Afuri Ramen Dumpling maintains control over the location of its franchises and has the option to take over the lease if the franchisee defaults or the franchise agreement is terminated. This protects Afuri Ramen Dumpling's brand and ensures continuity of operations.

Furthermore, the franchisee is required to provide Afuri Ramen Dumpling with a true copy of the lease and any subsequent additions or amendments promptly after they are executed. This allows Afuri Ramen Dumpling to stay informed about the terms of the lease and any changes that may affect the franchise operations. The FDD also states that the location for the Franchise Premises must meet minimum square footage and other standards outlined in their Operations Manual.

Prospective franchisees should carefully review Exhibit 2 and the Operations Manual to understand the specific requirements for the lease agreement and the assignment of lease terms. Franchisees should also consider the potential financial implications if Afuri Ramen Dumpling needs to cure any breach of the lease, as the franchisee will be responsible for immediately reimbursing Afuri Ramen Dumpling for all costs and payments incurred.