factual

Does Afuri Ramen Dumpling have the right to audit the books of other businesses owned by the franchisee?

Afuri_Ramen_Dumpling Franchise · 2024 FDD

Answer from 2024 FDD Document

Some Afuri franchises may be placed at a location where another, separate business is operated under another business name. If the Franchise Premises is at that type of location, it will be deemed "co-branded" for the purposes of this Agreement. If the Franchise Premises is located in a co-branded location, the exact basis and calculation of Revenue will follow the requirements and procedures we outline in the Operations Manual. If the Franchise Premises is in a co-branded location, you will obtain and keep, or make arrangements for us to have access to, a complete and accurate set of books and records of the operation of all businesses operated at and all business done through the cobranded location, although Revenue will be limited to Afuri related receipts. If the Franchise Premises is located in a co-branded location, we may enter upon the Franchise Premises at reasonable times to interview co-branded partners and to inspect and copy any books, records and documents related to the co-branded location in order to verify your compliance with the terms of the Franchise Agreement. The Operations Manual may contain additional information about co-branded locations.

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

What This Means (2024 FDD)

According to Afuri Ramen Dumpling's 2024 Franchise Disclosure Document, in cases where an Afuri Ramen Dumpling franchise is co-branded with another business, the franchisee must either keep or arrange for Afuri Ramen Dumpling to have access to a complete and accurate set of books and records for all businesses operated at the co-branded location. However, revenue will be limited to Afuri Ramen Dumpling related receipts.

Afuri Ramen Dumpling has the right to enter the co-branded Franchise Premises at reasonable times to interview co-branded partners and to inspect and copy any books, records, and documents related to the co-branded location. This is to verify the franchisee's compliance with the terms of the Franchise Agreement.

This condition only applies to co-branded locations, meaning locations where an Afuri Ramen Dumpling franchise operates alongside another separate business under a different name. The Operations Manual may contain additional information about co-branded locations.

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.