Afuri Ramen
Afuri Ramen offers fast-casual restaurants serving Japanese-style ramen and other dishes. Known for its diverse broths and toppings, it operates in the casual dining sector of the food service industry.
About Afuri Ramen
Afuri is a chain of ramen restaurants, based in Tokyo, Japan. There are locations in Oregon, California, Canada, Hong Kong, Portugal, and Singapore.
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Afuri Ramen franchise FAQ
How much does it cost to open one — the total initial investment?
The approximate total initial investment necessary to begin operation of your first Afuri franchise with a commissary kitchen is $591,000 to $1,153,000. This includes $45,000 payable to the franchisor or its affiliate(s) [p.1].
What is the initial franchise fee?
The Initial Franchise Fee is $45,000 and is reduced to $30,000 for your second and each additional franchise you purchase. This fee covers sales expenses, administrative overhead, return on investment, and start-up costs related to executing the Franchise Agreement and opening the franchise [p.19, p.10, p.94].
What are the ongoing royalty and advertising fees?
The ongoing royalty fee is not specified in these excerpts, but it is mentioned that liquidated damages would be calculated based on "Royalty Fees" if the agreement were terminated early [p.118]. The Advertising Fee is described as additional to local advertising expenses, with details provided in Item 11 of the disclosure document [p.15 and p.94-95].
How long is the initial franchise agreement, and can I renew it?
This isn't specified in the excerpts.
Can I sell or transfer my franchise, and what does that require?
You can sell or transfer your franchise, but it requires giving the franchisor the right of first purchase before soliciting offers from a third party [p.123]. Additionally, if you decide to sell your franchise business, there may be a separate transfer fee [p.11], and the franchisor has the option to purchase all of the franchise business regardless of your intent to sell [p.124].
On what grounds can the franchisor terminate the agreement?
The franchisor can terminate the agreement for good cause, which includes the failure of the franchisee to comply with any lawful provision of the Franchise Agreement and to cure such failure after being given written notice and a reasonable opportunity, not exceeding 30 days. [p.183]
What financial requirements — net worth and liquid capital — do I need to qualify?
This isn't specified in the excerpts. The provided FDD does not detail specific net worth or liquid capital requirements for franchisees to qualify.
Do I get an exclusive or protected territory?
No, you do not receive an exclusive territory. However, your development area is protected from other franchisees or outlets owned by the company using their marks and system, as long as you are not in default of the Franchise Agreement [p.36]. This protection does not extend to competition from other channels of distribution or competitive brands controlled by the company [p.35].
What training and ongoing support does the franchisor provide?
The franchisor provides training programs to new franchisees, which Transferees must complete to the franchisor's satisfaction [p.167]. However, this excerpt does not specify details about ongoing support provided by the franchisor.
How many franchised outlets are there, and how many have closed or been terminated?
According to [p.47], as of December 31, 2023, there is a complete listing of all franchised outlets in the United States. However, the number of currently operating outlets and those that have ceased operations are not specified in this excerpt. The information about terminated franchise agreements can be found on [p.49], where it states that three Franchise Agreements were terminated by mutual agreement, but specific numbers for operational versus closed outlets are not provided.
Does the franchisor share any financial performance or earnings information?
The franchisor may provide financial performance information if there is a reasonable basis for it and if it includes actual records of an existing outlet you are considering buying. However, the franchisor does not make any representations about future financial performance or past financial performance of company-owned or franchised outlets, nor do they authorize their employees or representatives to make such representations [p.45].
What am I restricted to selling, and where must I buy supplies?
You are required to purchase items that bear the franchisor's marks from them or approved suppliers [p.110]. Additionally, you may have to buy or lease certain items from the franchisor or a limited group of suppliers they designate, which might be more expensive than other options [p.4]. There are no specific restrictions on what you can sell, but you must ensure that your inventory is sufficient to meet customer demand and comply with operating restrictions such as controlling your location and hours of operation [p.4, p.36].