What are all the obligations of an Afuri Ramen Dumpling franchisee, considering both the franchise agreement (Item 9) and the restrictions on sources of products and services (Item 8)?

no longer be approved.

We estimate that your required purchases from us, our affiliates, approved suppliers or in compliance with our specifications will be from 50% to 75% of the total purchases you make to establish your franchise and from 25% to 35% percent of the total purchases you make to operate your franchise.

We and our affiliates may derive revenue from providing products and services directly to our franchisees. During our fiscal year ended December 31, 2023, we received such revenue in the amount of $0, which was 0% of our total revenue of $439,939. During our fiscal year ended December 31, 2023, our affiliate, Nakamura Foods, received such revenue in the amount of $56,426.45, which was 100% of its total revenue of $56,426.45.

We and our affiliates may receive rebates, price adjustments, or discounts on products or services sold to you by recommended or approved suppliers. As of the issuance date of this disclosure document, we receive rebates from our designated supplier(s) of private seasonings and kitchen ventilation equipment in the United States. Such rebates are based on franchisee purchases and are 5% of the purchase price. AFURI-USA receives rebates from our designated supplier(s) of cleaning supplies in the United States. Such rebates are based on franchisee purchases and are 5% of the purchase price. Our affiliate, Nakamura Foods, receives rebates from our designated supplier(s) of certain seasonings. Such rebates are based on franchisee purchases and are 5% of the purchase price. We and our affiliate may retain such rebates and use them for any purpose.

There are no other obligations for you to purchase or lease according to specifications or from approved suppliers. Except as explained above, we have no required specifications, designated suppliers or approved suppliers for goods, services, or real estate related to your franchise business. Except as explained above, we will not derive revenue from your purchases or leases.

We do not provide material benefits to you based on your use of a particular supplier. However, to renew your franchise or purchase additional franchises, you must be in compliance with your Franchise Agreement, which includes compliance with any supplier standards that are contained in our Operations Manual.

We intend to negotiate purchase arrangements with suppliers, including price terms, for the benefit of our franchisees. We have not yet entered into any formal purchasing or distribution cooperatives related to our franchise system, but we reserve the right to do so. In the future, we hope to create and augment the effectiveness of cooperatives for the purchase of materials and the provision of advertising, for the benefit of the Afuri franchise system.

You may not sell any products, services or activities other than those specifically recognized and approved by us as part of our franchise system without our prior written approval.

You are required to follow our customer service requirements outlined in the Operations Manual.

Insurance

You must obtain and maintain at your own expense the minimum insurance coverage that we and the Franchise's lease periodically require, and you must meet the other insurance-related obligations in the Franchise Agreement. You may elect to purchase more coverage than we require. The coverages listed below reflect only minimum coverage limits for each franchise location. As of the issuance date of this disclosure document, we require you to maintain the following coverages:

• (a) broad form commercial general liability coverage, on an occurrence form, including: errors and omissions, food borne illness, dram shop/liquor liability, premises and operations, products and completed operations, personal and advertising injury, broad form contractual, and employers liability; against claims for bodily injury, personal injury, including death, and property damage with minimum limits of not less than $1,000,000 per occurrence and $2,000,000 aggregate for each coverage;
• 18 Afuri Franchise Disclosure Document

• (b) all risk property insurance including equipment breakdown for the full replacement cost sufficient to cover all business personal property including contents, leasehold improvements, furniture, fixtures, equipment, and signs;