What was the total amount of initial franchise fees that Afuri Ramen Dumpling received?
Afuri_Ramen_Dumpling Franchise · 2024 FDDAnswer from 2024 FDD Document
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2 PAYMENT OF FEES AND OTHER FINANCIAL REQUIREMENTS
2.1 Initial Franchise Fee. The Initial Franchise Fee is $45,000. Contemporaneously with the execution of this Agreement, you have paid to us the entire Initial Franchise Fee. The Initial Franchise Fee is paid in consideration of our sales expenses, administrative overhead, return on investment, and start-up costs related to the execution of this Agreement and the opening of the Franchise and for our lost or deferred o
Source: Item 23 — Receipts (FDD pages 50–189)
What This Means (2024 FDD)
Based on the 2024 Afuri Ramen Dumpling Franchise Disclosure Document, the initial franchise fee is $45,000. This fee is generally non-refundable and is paid in consideration of sales expenses, administrative overhead, return on investment, and start-up costs related to the execution of the franchise agreement and the opening of the franchise. It also covers the franchisor's lost or deferred opportunity to sell franchises in the franchise territory to others.
The FDD states that the franchisee pays the entire initial franchise fee contemporaneously with the execution of the agreement. However, the excerpt does not specify the number of franchise agreements Afuri Ramen Dumpling entered into during the reporting period, nor does it provide the total amount of initial franchise fees the company received.
Therefore, while the FDD discloses the individual initial franchise fee amount, it does not provide the aggregate amount of initial franchise fees collected by Afuri Ramen Dumpling. A prospective franchisee should inquire directly with the franchisor to obtain information on the total initial franchise fees collected during a specific period to better understand the company's financial performance and growth.