Ivan Ramen
Ivan Ramen offers authentic Japanese ramen in a casual dining setting. Known for its flavorful broths and creative toppings, it operates in the quick-service restaurant sector of the food service industry.
About Ivan Ramen
Ivan Ramen is a ramen restaurant in New York City which is run by chef Ivan Orkin.
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Ivan Ramen franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to begin operation of one Ivan Ramen Restaurant franchise ranges from $1,024,500 to $1,982,100. This includes a mandatory payment of $35,000 to the franchisor or its affiliate [p.1].
What is the initial franchise fee?
This isn't specified in the excerpts. The excerpts discuss deferral of payment of the initial franchise fee but do not provide details about its amount or structure.
What are the ongoing royalty and advertising fees?
The franchisee will pay ongoing royalties based on a percentage of their gross sales, as specified in the FDD on pages [p.309], [p.283], and [p.296]. Additionally, if a marketing fund is established, franchisees will be charged 1.5% of their monthly gross sales for contributions to this fund, according to the information provided on pages [p.296] and [p.309].
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?
The sale or assignment of your franchise requires approval from the franchisor [p.108]. The total sales price must not jeopardize the economic viability of the franchised business or the assignee's operations [p.108]. This process involves ensuring the price is reasonable and does not harm the ongoing operation of the franchise [p.108].
On what grounds can the franchisor terminate the agreement?
This isn't specified in the excerpts.
What financial requirements — net worth and liquid capital — do I need to qualify?
The FDD does not specify exact net worth or liquid capital requirements for qualification. However, it outlines that you must maintain a minimum working capital reserve and ensure adequate reserves and working capital sufficient to fulfill your obligations and cover risks and contingencies for at least three months [p.89]. This includes maintaining certain financial health metrics as determined by the franchisor [p.89].
Do I get an exclusive or protected territory?
No, you do not receive an exclusive territory. Your Development Territory includes Protected Territories for each Ivan Ramen Restaurant Business you develop, but these are not exclusive. You may face competition from other franchisees, outlets owned by the company, and other channels of distribution controlled by the company [p.37, p.319, p.35].
What training and ongoing support does the franchisor provide?
The franchisor provides on-site and off-site training and assistance, which can be requested by the franchisee [p.34]. However, this support is not guaranteed, as it depends on the availability of their personnel. For ongoing support, the franchisor reserves the right to develop software support capabilities in the future and potentially charge for such services [p.20].
How many franchised outlets are there, and how many have closed or been terminated?
This isn't specified in the excerpts. The provided FDD does not give a number of current franchised outlets or any information about outlets that have closed or been terminated.
Does the franchisor share any financial performance or earnings information?
The franchisor does not make any representations about a franchisee's future financial performance or the past financial performance of company-owned or franchised outlets, either orally or in writing [p.56]. However, if you are purchasing an existing outlet, the franchisor may provide actual records of that outlet [p.56]. This isn't specified in the excerpts for new franchises.
What am I restricted to selling, and where must I buy supplies?
You are required to purchase or lease items from the franchisor or a limited group of suppliers designated by them, which may be more expensive than similar items you could buy on your own [p.3]. Additionally, if the franchisor develops new proprietary products, equipment, or services in the future as part of the System, you must buy such items from the franchisor, its affiliate, or designee [p.14]. There are no specific restrictions mentioned regarding what you can sell, but you are not allowed to operate a similar business during the term of the franchise and have other operating restrictions [p.3].