Under what condition is an Afuri Ramen Dumpling franchisee required to pay a Re-Inspection Fee?
Afuri_Ramen_Dumpling Franchise · 2024 FDDAnswer from 2024 FDD Document
| Type of Fee | Amount | Date Due | Remarks |
|---|---|---|---|
| Franchise Agreement Section 5.1). | |||
| Non-Cash Payment Systems | All costs associated with non-cash payment systems | As incurred | You must accept debit cards, credit cards, stored value gift cards or other non-cash payment systems we specify. |
| Manual Replacement Fee | $500 | On demand | You pay this fee if you lose the copy of the Operations Manual we loan to you. |
| Re-Inspection Fee | $500 per re-inspection | On demand | You pay this fee if we must re-visit your location for an inspection after you have already been notified of any deficiency or non- satisfactory condition. |
| Liquidated Damages | An amount equal to two times the total Royalty Fees paid (or if unpaid, payable) by you during the 24 months before the termination date. | Within 30 days following the date of termination. | Payable if you default and we terminate your Franchise Agreement. |
| Sanitation and Food Safety Audits | Cost of the inspection | On demand | We may, in our sole discretion, contract with a third party to conduct sanitation and food safety audits during the term of your Franchise Agreement. |
| Business/Financial Audit7 | Our reasonable costs for the audit if you understate revenue by more than 2% or fail to deliver to us required reports on time | Immediately upon demand | See notes below. |
| Participation in Advisory Council | As incurred | As incurred | If you participate on an Advisory Council, you will pay any costs you incur related to your participation, such as travel and living expenses to attend |
Source: Item 6 — Other Fees (FDD pages 11–16)
What This Means (2024 FDD)
According to Afuri Ramen Dumpling's 2024 Franchise Disclosure Document, a franchisee is required to pay a Re-Inspection Fee under specific circumstances related to inspections of their location. If Afuri Ramen Dumpling conducts an inspection and identifies deficiencies or non-satisfactory conditions, the franchisee will be notified.
If a re-inspection is required to verify that the franchisee has corrected the previously identified issues, Afuri Ramen Dumpling will charge a Re-Inspection Fee. This fee is $500 per re-inspection and is due on demand. This means that the franchisee must promptly pay the fee upon receiving the invoice or notification from Afuri Ramen Dumpling.
This policy encourages franchisees to address any issues identified during inspections in a timely and effective manner. By charging a fee for re-inspections, Afuri Ramen Dumpling incentivizes franchisees to maintain standards and comply with the brand's operational requirements. It's important for prospective franchisees to understand this fee and factor it into their operational budget, as repeated failures to correct deficiencies could result in multiple re-inspection fees.