What is the scope of revenue considered for a co-branded Afuri Ramen Dumpling location?
Afuri_Ramen_Dumpling Franchise · 2024 FDDAnswer from 2024 FDD Document
ess 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.
Source: Item 23 — Receipts (FDD pages 50–189)
What This Means (2024 FDD)
According to the 2024 Afuri Ramen Dumpling Franchise Disclosure Document, if a franchise is located in a co-branded location, revenue calculations will adhere to the requirements and procedures outlined in the Operations Manual. While the franchisee must maintain complete and accurate books and records for all businesses operated at the co-branded location, revenue will be specifically limited to Afuri Ramen Dumpling related receipts.
This means that for co-branded locations, Afuri Ramen Dumpling will only consider the revenue generated from the Afuri Ramen Dumpling business when calculating royalties or other fees. The franchisee is still obligated to provide comprehensive financial records for all businesses at the location, allowing Afuri Ramen Dumpling to verify compliance with the franchise agreement.
Afuri Ramen Dumpling retains the right to access and inspect these records, including interviewing co-branded partners, to ensure accurate reporting and compliance. The Operations Manual will provide further details on the specific requirements and procedures for co-branded locations, which franchisees should carefully review to understand their obligations.