factual

Who is responsible for finding the location of the Afuri Ramen Dumpling Franchise Premises?

Afuri_Ramen_Dumpling Franchise · 2024 FDD

Answer from 2024 FDD Document

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. Any site recommendation or approval we make is not a representation that any particular site is available or legally appropriate for use as a franchise site. It is your responsibility to investigate all applicable zoning, licensing, leasing, and other requirements for any proposed site. You must ensure that the site you select complies with these requirements.
  • 1.3.5 You acknowledge and agree that any location we select or approve, and any lease we approve will be with the understanding that it meets our minimum acceptable criteria based upon our general business experience. The location for the Franchise Premises must meet our minimum square footage and other standards outlined in our Operations Manual. You acknowledge that you are responsible for reviewing and determining the appropriateness and desirability of the lease. We will have no liability with respect to the selection or approval of a location or any lease for the Premises, nor liability with respect to any site recommendations we make.

Source: Item 23 — Receipts (FDD pages 50–189)

What This Means (2024 FDD)

According to the 2024 Afuri Ramen Dumpling Franchise Disclosure Document, the franchisee is primarily responsible for finding the location for their franchise premises. However, this is subject to the franchisor's approval. The FDD outlines that the franchisee must select a site within a defined search area, as detailed in Exhibit 1 of the franchise agreement, and in accordance with the agreement's terms.

Afuri Ramen Dumpling does offer assistance in site selection if the franchisee requests it. This assistance may include helping to find a location that is acceptable to both parties. However, the franchisee is responsible for covering all reasonable out-of-pocket expenses related to this assistance, such as travel and lodging costs incurred by Afuri Ramen Dumpling to help locate potential sites. The availability of on-site assistance is subject to Afuri Ramen Dumpling's schedule. The franchisee is also responsible for all other site selection and lease negotiation expenses.

While Afuri Ramen Dumpling may provide site selection assistance and has approval authority over the location, the FDD clearly states that neither Afuri Ramen Dumpling nor its employees have special expertise in selecting sites, and they do not guarantee the success of any location selected or lease signed. Afuri Ramen Dumpling will not be liable for any consequences resulting from the franchisee's choice of location. The franchisee is also responsible for reviewing and determining the appropriateness and desirability of the lease.

Before finalizing any lease or purchase agreement for the franchise premises, the franchisee must submit the relevant documents to Afuri Ramen Dumpling for approval. The location must meet Afuri Ramen Dumpling's minimum square footage and other standards as outlined in the Operations Manual. The franchisee must ensure that the site complies with all requirements. Any location selected or approved by Afuri Ramen Dumpling, and any lease approved, will be based on the understanding that it meets the franchisor's minimum acceptable criteria based on their general business experience.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.