What is the minimum reimbursement amount an Afuri Ramen Dumpling franchisee must pay for renewal costs?
Afuri_Ramen_Dumpling Franchise · 2024 FDDAnswer from 2024 FDD Document
the financial statements were available to be issued.
NOTE 3 - FRANCHISING
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. The franchise agreements also require the franchisee to pay monthly royalty fees based on revenue levels. The franchisee pays marketing fees monthly to cover advertising, market research, and search engine optimization. Subject to the Company's approval and payment of a renewal fee, a franchisee may generally renew its agreement upon expiration. Direct costs of sales and
Source: Item 23 — Receipts (FDD pages 50–189)
What This Means (2024 FDD)
According to the 2024 Afuri Ramen Dumpling Franchise Disclosure Document, a franchisee may generally renew their agreement upon expiration, subject to Afuri Ramen Dumpling's approval and payment of a renewal fee. The exact amount of this renewal fee is not specified in the provided excerpts.
While the FDD excerpts mention an initial franchise fee of $45,000, monthly royalty fees, and marketing fees, these are distinct from renewal fees. The excerpts also detail potential costs for re-inspection of premises ($500 plus out-of-pocket expenses) and participation in quality control programs, but these are unrelated to the franchise renewal process.
As the specific renewal fee is not disclosed in the provided excerpts, prospective Afuri Ramen Dumpling franchisees should directly ask the franchisor for detailed information regarding the renewal fee, its calculation, and any conditions or factors that might affect the renewal costs. This information is crucial for financial planning and assessing the long-term viability of the franchise investment.