Does Afuri Ramen Dumpling have written governing documents that govern any cooperative advertising program?
Afuri_Ramen_Dumpling Franchise · 2024 FDDAnswer from 2024 FDD Document
We will administer each Regional Advertising Fund in the same manner and upon the same terms and conditions as the Advertising Fee outlined in this Item 11. (Franchise Agreement, Section 2.5). There are no other written governing documents that govern any cooperative advertising program. No Regional Advertising Fund will be audited. However, we will prepare annual financial statements that you may obtain upon written request to us.
Your contributions must be paid to the cooperative administrator we designate, when and in the same manner as the Royalty Fee and Advertising Fee payments are paid to us. Please refer to Items 6, 8 and 9 for more information about our advertising programs.
Source: Item 11 — Franchisor's Assistance, Advertising, Computer Systems, and Training (FDD pages 27–34)
What This Means (2024 FDD)
According to the 2024 Afuri Ramen Dumpling FDD, there are no other written documents that govern any cooperative advertising program. However, if 75% of franchisees in an advertising region vote to contribute to a regional advertising program, all franchisees within that region are obligated to contribute to a Regional Advertising Fund. The contribution cannot exceed 2% of the franchisee's Revenue.
Afuri Ramen Dumpling will administer each Regional Advertising Fund in the same manner and upon the same terms and conditions as the Advertising Fee. While the Regional Advertising Fund will not be audited, Afuri Ramen Dumpling will prepare annual financial statements that franchisees can obtain upon written request.
Franchisees are required to pay contributions to the cooperative administrator designated by Afuri Ramen Dumpling, following the same payment schedule as the Royalty Fee and Advertising Fee. Further details about Afuri Ramen Dumpling's advertising programs can be found in Items 6, 8, and 9 of the FDD.