What are the payment terms for the monthly training fees for Afuri Ramen Dumpling?
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)
Based on the 2024 Franchise Disclosure Document, Afuri Ramen Dumpling's franchise agreement stipulates that the franchisee pays an initial, non-refundable fee of $45,000, which covers required training costs. The agreement also requires franchisees to pay monthly royalty fees based on revenue levels and monthly marketing fees for advertising, market research, and search engine optimization. However, the FDD does not specify any recurring monthly training fees beyond the initial training covered by the initial franchise fee.
While the initial franchise fee covers the initial training program, the FDD lacks specific details regarding ongoing or monthly training fees. It mentions that the franchisee pays monthly royalty and advertising fees, but it does not mention any additional monthly fees specifically designated for training.
Therefore, prospective Afuri Ramen Dumpling franchisees should clarify with the franchisor whether there are any circumstances under which monthly training fees would be required, what those fees would cover, and how they would be assessed. This information is crucial for understanding the full scope of financial obligations beyond the initial investment and ongoing royalty and advertising fees.