Who is responsible for paying the Afuri Ramen Dumpling Transfer Fee when a franchise is transferred?
Afuri_Ramen_Dumpling Franchise · 2024 FDDAnswer from 2024 FDD Document
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- Transfer Fee. The Transfer Fee is payable by you or the transferee if you transfer your franchise (see Franchise Agreement, Section 7.1).
- If you obtain a franchise by purchasing the business of one of our existing franchisees, then you may also incur certain costs associated with bringing your Franchised Operation into compliance with our requirements.
Source: Item 6 — Other Fees (FDD pages 11–16)
What This Means (2024 FDD)
According to Afuri Ramen Dumpling's 2024 Franchise Disclosure Document, the Transfer Fee is payable by either the franchisee (the seller) or the transferee (the buyer) when a franchise is transferred. The specific allocation of this fee is determined by the agreement between the parties involved in the transfer, as detailed in Section 7.1 of the Franchise Agreement.
This means that prospective Afuri Ramen Dumpling franchisees need to negotiate carefully who will bear the cost of the Transfer Fee during the transfer process. The FDD does not specify a fixed amount for the transfer fee in Item 5, so it is important to clarify this amount with the franchisor.
Furthermore, if a new franchisee is purchasing an existing Afuri Ramen Dumpling business from a previous franchisee, they may also incur costs to ensure the Franchised Operation complies with the current requirements set by Afuri Ramen Dumpling. This could involve upgrades, renovations, or changes to meet the brand's standards, adding to the overall investment required during the transfer.