What does the Afuri Ramen Dumpling transfer fee cover?
Afuri_Ramen_Dumpling Franchise · 2024 FDDAnswer from 2024 FDD Document
n default in any way under the Franchise Agreement or any other agreement between it and Franchisor.
- G. Transferee will pay for and complete to Franchisor's exclusive satisfaction the training programs now required of new franchisees. [Transferee has completed to Franchisor's satisfaction the training programs now required of new franchisees.] [Transferee has demonstrated to Franchisor's satisfaction sufficient ability to successfully operate the franchise]. Franchisee or Transferee have submitted to Franchisor, u
Source: Item 23 — Receipts (FDD pages 50–189)
What This Means (2024 FDD)
According to Afuri Ramen Dumpling's 2024 Franchise Disclosure Document, the transfer fee covers specific expenses incurred by the franchisor during the transfer process. This fee compensates Afuri Ramen Dumpling for legal and accounting costs, as well as expenses related to credit checks, training, and general investigative work associated with the transfer.
For a franchisee looking to transfer their Afuri Ramen Dumpling franchise, understanding what the transfer fee covers is essential. It clarifies that the fee is not arbitrary but is intended to reimburse the franchisor for tangible costs directly related to assessing and executing the transfer. This includes ensuring the new franchisee meets the brand's standards and is adequately prepared to operate the franchise.
Furthermore, the document specifies that the franchisee or transferee must submit the transfer fee upon the execution of the agreement. The exact amount of the transfer fee is not specified in the provided excerpt but is indicated by "$---". In addition to the transfer fee, the franchisee may also be required to pay a commission on the gross transfer price (excluding real property), which covers the franchisor's efforts in obtaining a transferee for the franchisee. The exact percentage and amount of this commission are also not specified in the excerpt but are indicated by blank spaces.