What was the total advertising expense for Afuri Ramen Dumpling at December 31, 2021?
Afuri_Ramen_Dumpling Franchise · 2024 FDDAnswer from 2024 FDD Document
vices and for initial franchise fees collected but recognized over the course of the agreement.
Advertising – The Company expenses advertising costs as they are incurr
Source: Item 23 — Receipts (FDD pages 50–189)
What This Means (2024 FDD)
According to Afuri Ramen Dumpling's 2024 Franchise Disclosure Document, the company's advertising expense totaled $12,130 at December 31, 2021. This figure reflects the costs Afuri Ramen Dumpling incurred for advertising during that year. For a prospective franchisee, this indicates the level of advertising investment made by the company itself.
It's important to note that this expense is distinct from any marketing fees franchisees themselves are required to pay. The FDD states that franchisees pay marketing fees monthly to cover advertising, market research, and search engine optimization. The $12,130 represents what Afuri Ramen Dumpling spent directly, not the pooled contributions from franchisees.
Franchisees should consider this advertising expense in relation to the overall marketing strategy and support provided by Afuri Ramen Dumpling. Understanding how the franchisor allocates resources for advertising can help a franchisee assess the potential effectiveness of marketing efforts and the value of the brand's recognition in their local market.