What period of operations does the total initial investment for an Afuri Ramen Dumpling franchise cover?
Afuri_Ramen_Dumpling Franchise · 2024 FDDAnswer from 2024 FDD Document
Initial Start-Up Phase and 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.
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 estimated initial investment covers the first three months of operations. The FDD states that the additional funds included in the total initial investment are intended to cover the initial start-up phase, which is estimated to be approximately 3 months.
Specifically, these additional funds are estimates that apply only to the initial three months of operating the first Afuri Ramen Dumpling franchise. The franchisor considered the openings and operations of similar businesses by their affiliates in Portland, Oregon, when setting the amount for these additional funds.
Prospective franchisees should understand that these figures are estimates, and actual costs may vary based on factors such as management skills, local economic conditions, and the local market. The FDD also advises that additional funds may be required to finance operations until the business achieves a positive cash flow, and franchisees should plan on having other sources of income to cover living expenses during this initial phase.