Under what conditions is an Afuri Ramen Dumpling franchise considered 'co-branded'?
Afuri_Ramen_Dumpling Franchise · 2024 FDDAnswer from 2024 FDD Document
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- 1.1.4 Co-Branding. Some Afuri franchises may be placed at a location where another, separate business is operated under another business name. If the Franchise Premises is at that type of location, it will be deemed "co-branded" for the purposes of this Agreement. If the Franchise Premises is located in a co-branded location, the exact basis and calculation of Revenue will follow the requirements and procedures we outline in the Operations Manual. If the Franchise Premises is in a co-branded location, you will obtain and keep, or make arrangements for us to have access to, a complete and accurate set of books and records of the operation of all businesses operated at and all business done through the cobranded location, although Revenue will be limited to Afuri related receipts. If the Franchise Premises is located in a co-branded location, we may enter upon the Franchise Premises at reasonable times to interview co-branded partners and to inspect and copy any books, records and documents related to the co-branded location in order to verify your compliance with the terms of the Franchise Agreement.
Source: Item 23 — Receipts (FDD pages 50–189)
What This Means (2024 FDD)
According to the 2024 Afuri Ramen Dumpling Franchise Disclosure Document, an Afuri Ramen Dumpling franchise is considered 'co-branded' if it is situated at a location where another, separate business operates under a different business name. This means that the Afuri Ramen Dumpling franchise shares its premises with another business, maintaining distinct operations under separate brand identities.
For a prospective franchisee, operating a co-branded Afuri Ramen Dumpling location involves specific requirements. The exact basis and calculation of revenue for co-branded locations will adhere to the guidelines outlined in the Afuri Ramen Dumpling Operations Manual. Additionally, the franchisee must maintain a complete and accurate set of books and records for all businesses operating at the co-branded location, and provide access to these records to Afuri Ramen Dumpling for compliance verification, although revenue will be limited to Afuri related receipts.
Afuri Ramen Dumpling retains the right to enter the co-branded premises at reasonable times to interview co-branded partners and inspect/copy any books, records, and documents related to the co-branded location. This is to ensure the franchisee's compliance with the terms of the Franchise Agreement. The Operations Manual provides further details regarding co-branded locations, which a potential franchisee should review carefully to understand the full scope of requirements and obligations.