Who is responsible for paying for the transferee's training program for an Afuri Ramen Dumpling franchise?
Afuri_Ramen_Dumpling Franchise · 2024 FDDAnswer from 2024 FDD Document
all ascertained or liquidated debts concerning the Franchise.
- C. You may not be in breach of this Agreement or any other agreement between the parties. Our consent to the transfer will not constitute a waiver of any claims we may have against you.
- D. The transferee will pay for and complete to our exclusive satisfaction the training programs we then require of new franchisees or otherwise show to our satisfaction sufficient ability to successfully operate the Franchise.
- E. You or the transferee will pay a Transfer Fee according to our then-current Transfer Fee Schedule. This fee will reimburse us for our reasonable legal, accounting, credit check, and
investigation expenses that result from the transfer, as well as the mandatory training program for the transferee. The current Transfer Fee is $30,000.
- F.
Source: Item 23 — Receipts (FDD pages 50–189)
What This Means (2024 FDD)
According to the 2024 Afuri Ramen Dumpling Franchise Disclosure Document, the transferee is responsible for covering the costs of the training program. However, the agreement states that either the transferor (the current franchisee) or the transferee can pay the transfer fee.
Before Afuri Ramen Dumpling approves a franchise transfer, the transferee must fulfill the training programs to the company's satisfaction or demonstrate the ability to successfully operate the franchise. This ensures that the new franchisee is adequately prepared to maintain the brand's standards and operational procedures.
In addition to covering the training programs, the transferee or the transferor must pay a transfer fee. The current transfer fee is $30,000, which reimburses Afuri Ramen Dumpling for legal, accounting, credit check, investigation expenses, and the mandatory training program for the transferee. This fee structure is typical in franchising, as it compensates the franchisor for the administrative and training efforts associated with the transfer process.
Furthermore, the transferee may need to refurbish, remodel, and replace the franchise premises to meet Afuri Ramen Dumpling's current standards. This could involve updating fixtures, equipment, delivery vehicles (if applicable), and signage as outlined in the Operations Manual and System standards. This requirement ensures brand consistency and adherence to the franchisor's established image and operational guidelines.