factual

Does Afuri Ramen Dumpling use advertising fees to solicit the sale of franchises?

Afuri_Ramen_Dumpling Franchise · 2024 FDD

Answer from 2024 FDD Document

While advertising materials may note that franchises are available from us, no advertising fees or assessments we collect from our franchisees are used for advertising that is principally a solicitation for the sale of franchises.

Source: Item 11 — Franchisor's Assistance, Advertising, Computer Systems, and Training (FDD pages 27–34)

What This Means (2024 FDD)

According to Afuri Ramen Dumpling's 2024 Franchise Disclosure Document, advertising fees collected from franchisees are not used for advertising that primarily solicits the sale of franchises. While advertising materials may mention that franchises are available, the advertising fees are dedicated to promoting the brand and supporting existing franchise locations, not for attracting new franchisees.

Afuri Ramen Dumpling administers the advertising fees and directs regional and national advertising programs. These programs cover various mediums, including print, internet (websites and social media), and public relations. The fees can be used to maintain and update the company's website, online portal, and POS systems, as well as to create content for these platforms.

It is important to note that Afuri Ramen Dumpling is not obligated to ensure that advertising expenditures are proportionate to franchisees' contributions in any given market area, nor is it required to spend any amount on advertising in a franchisee's specific territory. Any advertising fees not used in a fiscal year will be carried over and used for advertising and marketing expenses in the following year. Franchisees may request an accounting of the advertising fees and expenditures in writing.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.