To what period of operations does the additional funds estimate apply for an Afuri Ramen Dumpling franchise?
Afuri_Ramen_Dumpling Franchise · 2024 FDDAnswer from 2024 FDD Document
Working Capital. We estimate that the initial phase covered by the additional funds estimate to be approximately 3 months. Additional funds are provided only as estimates and apply only to your initial three months of operations of your first Franchise. In setting the amount of the additional funds estimate in the table, we considered or relied upon the following factors, basis, and experience: The openings and operations of similar businesses by our affiliates in Portland, Oregon.
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- Multiple Franchise Purchases. If you are purchasing multiple franchises, then you will incur the estimated initial expenditures for each separate franchise you purchase.
Additional Notes. Your actual costs will depend on how much you follow our methods and procedures; your management skills, experience and business acumen; local economic conditions; the local market for your products and services; the prevailing wage rate; competition;
Source: Item 7 — Estimated Initial Investment (FDD pages 16–22)
What This Means (2024 FDD)
According to the 2024 Afuri Ramen Dumpling Franchise Disclosure Document, the additional funds estimate covers the initial three months of operations for a franchisee's first location. The FDD indicates that the franchisor estimates the initial phase covered by the additional funds to be approximately 3 months. These additional funds are intended to help cover expenses until the business achieves a positive cash flow.
Afuri Ramen Dumpling based its additional funds estimate on the experience of its affiliates' similar businesses in Portland, Oregon. However, the FDD also states that a franchisee's actual costs may vary depending on factors such as adherence to the franchisor's methods, management skills, local economic conditions, market demand, prevailing wage rates, competition, and sales levels achieved during the initial phase.
Prospective Afuri Ramen Dumpling franchisees should carefully consider these factors and review the estimates with their business advisors. The FDD also advises that franchisees should plan on having other sources of income to cover their living expenses during this initial phase. It is important to note that Afuri Ramen Dumpling does not provide any projections or estimates of the amount of additional funds that may be needed beyond this initial three-month period.