What is the required action regarding site selection for the Afuri Ramen Dumpling franchise premises?
Afuri_Ramen_Dumpling Franchise · 2024 FDDAnswer from 2024 FDD Document
nce with the terms of the Franchise Agreement. The Operations Manual may contain additional information about co-branded locations.
- 1.2 One Location for Franchise. You will operate the Franchise only at the Franchise Premises. If not determined when this Agreement is executed, you are responsible for selecting the site for the Franchise Premises within the search area ("Search Area") outlined in Exhibit 1 and in accordance with this Agreement.
1.3 Assistance in Site Location.
- 1.3.1 Unless we approve otherwise, the Franchise Premises for your first location will have a commissary kitchen. Unless we approve otherwise, the Franchise Premises for each additional location will be serviced by your commissary kitchen at your first Franchise Premises. For the first Franchise Premises with a commissary kitchen, the location will typically be a single story to facilitate ventilation.
- 1.3.2 You are responsible for finding the location of the Franchise Premises subject to our approval. The factors we may consider in approving or rejecting proposed site selections include, but are not limited to, the following: general location and neighborhood; traffic patterns; parking; physical characteristics of existing buildings; lease terms; population density; and population demographics. Also, we typically require that the Franchise Premises be at a new building (as opposed to a "second generation" restaurant location). We may modify these factors at our discretion.
- 1.3.3 If you request assistance in selecting a site for the Franchise Premises, we may provide
reasonable assistance in finding a location acceptable to you. If requested, you will pay for all reasonable out-of-pocket expenses related to any such site selection assistance, including travel and lodging expenses we incur to help you locate sites. Any on-site assistance is subject to our availability. You will bear all other site selection and lease negotiation expenses.
- 1.3.4 Neither we nor any of our employees have special expertise in selecting sites. We do not make guarantees with respect to any location you select or lease you sign. We will not be liable for any consequences of your choice of any franchise site.
Source: Item 23 — Receipts (FDD pages 50–189)
What This Means (2024 FDD)
According to Afuri Ramen Dumpling's 2024 Franchise Disclosure Document, the franchisee is primarily responsible for selecting the site for their franchise premises. If the location hasn't been determined when the agreement is executed, the franchisee must choose a site within the search area outlined in Exhibit 1, adhering to the terms of the Franchise Agreement.
Afuri Ramen Dumpling may offer assistance in site selection if requested by the franchisee. However, the franchisee will bear all expenses related to site selection and lease negotiation, including any out-of-pocket expenses incurred by Afuri Ramen Dumpling for on-site assistance, such as travel and lodging. The franchisor's assistance is subject to their availability.
The FDD specifies that the franchisee must ensure the selected site complies with all applicable zoning, licensing, leasing, and other requirements. Before entering into a lease or purchase agreement, the franchisee must submit the documents to Afuri Ramen Dumpling for approval. Lease documents must include a Franchise Premises Lease Agreement Rider or an assignment of the lease in a form approved by Afuri Ramen Dumpling, allowing them to assume the lease if necessary. The franchisee must also provide Afuri Ramen Dumpling with a copy of the lease and any amendments promptly after execution.