Will Afuri Ramen Dumpling notify franchisees of the establishment of regional advertising regions?
Afuri_Ramen_Dumpling Franchise · 2024 FDDAnswer from 2024 FDD Document
We have the power to require cooperatives to be formed, changed, dissolved, or merged. We may designate local, regional or national advertising coverage areas to develop cooperative local or regional advertising and promotional programs. We will promptly notify you and our other franchisees, of the establishment, modification and geographical boundaries of regional advertising regions. We may require all franchisees located within each geographic region to meet periodically for the purpose of creating and establishing regional advertising programs. Our company-owned outlets will not be required to participate in or contribute to such regional advertising programs.
Source: Item 11 — Franchisor's Assistance, Advertising, Computer Systems, and Training (FDD pages 27–34)
What This Means (2024 FDD)
According to Afuri Ramen Dumpling's 2024 Franchise Disclosure Document, Afuri Ramen Dumpling will promptly notify franchisees of the establishment, modification, and geographical boundaries of regional advertising regions. This notification is crucial for franchisees to understand their advertising obligations and potential cooperative advertising opportunities within their specific region.
Afuri Ramen Dumpling has the authority to require the formation, changes, dissolution, or merging of advertising cooperatives. They may also designate local, regional, or national advertising coverage areas to develop cooperative advertising programs. Franchisees located within a geographic region may be required to meet periodically to establish regional advertising programs. However, company-owned outlets are not required to participate in or contribute to these regional advertising programs.
If 75% of the franchisees in a regional advertising region vote to contribute to a regional advertising program, all franchisees within that region are obligated to contribute to the Regional Advertising Fund. The contribution cannot exceed 2% of the franchisee's revenue. Afuri Ramen Dumpling will provide a list of all open Afuri Ramen Dumpling franchises within the franchisee's advertising coverage area when a cooperative local or regional advertising program is developed.