Does Afuri Ramen Dumpling typically own the premises and lease it to the franchisee?

According to Afuri Ramen Dumpling's 2024 Franchise Disclosure Document, the franchisor generally does not own the premises and lease it to the franchisee. Typically, the franchisee will lease the premises from a third-party landlord.

This means that prospective Afuri Ramen Dumpling franchisees should plan to negotiate a lease agreement directly with a commercial landlord. The franchisor may provide advice and input related to site selection if requested, but the franchisee will be responsible for covering all associated expenses, including travel and lodging. The franchisor's approval is required for the proposed site and lease terms.

This arrangement is common in the franchise industry, as it allows the franchisor to focus on brand development and support services rather than property management. However, it also places the responsibility of securing a suitable location and negotiating favorable lease terms on the franchisee. Franchisees should carefully consider the costs and risks associated with leasing commercial property, including rent, security deposits, build-out expenses, and potential rent increases.