Risk Score
Pending analysis
Investment Range
$591,000 - $1,153,000
Franchise Fee
$30,000
Total US Locations
6
Business Summary
Afuri Franchise Inc. offers franchises for fast-casual restaurants specializing in freshly prepared ramen, Japanese style noodle dishes with a variety of broths, noodles, proteins, sauces, and garnishes. The restaurants also serve sushi, rice bowls, Japanese appetizers, and other food and beverage products for dine-in, take-out, delivery, and catering events. Franchisees use Afuri's programs and systems, along with its trademarks like "Afuri" and "Afuri Ramen + Dumpling".
Corporate History
Afuri Franchise Inc. was formed in Oregon on July 10, 2017, and began offering franchises in 2018. The original concept for Afuri restaurants was developed in Japan by AFURI, INC. (AFURI-JPN) in 1995, operating under the name Zundo-Bar until 2003, and then primarily as 'Afuri' thereafter. AFURI USA INC. is Afuri Franchise Inc.'s holding company, and AFURI BUCKMAN LLC, an Oregon corporation, is its parent company, which has operated a similar restaurant since 2016. Other affiliates, like Nakamura Foods, produce proprietary ingredients for the system.
Financial Overview
Investment Range
$591,000 - $1,153,000
Franchise Fee (Low)
$30,000
Franchise Fee (High)
$165,000
Royalty %
5%
Marketing %
1%
Equipment Costs (Low)
$290,000
Equipment Costs (High)
$580,000
Working Capital
$20,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Afuri Franchise Inc.'s financial statements for the fiscal years ending December 31, 2021, 2022, and 2023 are audited and received an unqualified opinion from the independent auditor, indicating they present fairly the financial position in all material respects. However, the FDD's state-specific addenda for Illinois and New York highlight a special risk: Afuri Franchise Inc.'s financial condition, as reflected in its financial statements, calls into question its financial ability to provide services and support to franchisees.
Financing Details
Afuri Franchise Inc. does not offer any direct or indirect financing to its franchisees. This means franchisees will need to secure all necessary funding for their initial investment and ongoing operations from third-party lenders.
Performance Metrics
Total US Locations
6
Franchised Units
1
Corporate Units
5
Avg Square Footage
3,250
Franchising Since
2018
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Afuri Franchise Inc. has no litigation history to report. No administrative, criminal, or civil actions are pending against the franchisor or its key personnel that are required to be disclosed in the FDD.
Bankruptcy History
Afuri Franchise Inc. has no bankruptcy history to report. No franchisor, predecessor, affiliate, or officer listed in the FDD has filed for bankruptcy.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew their Afuri franchise, franchisees must provide written notice to Afuri Franchise Inc. between three and six months before the current agreement expires. They must have faithfully complied with all terms of their initial franchise agreement, refurbish their location, and replace any outdated equipment to meet current standards. Franchisees are also required to sign a general release and a new franchise agreement, which may have different terms and conditions. Additionally, they must reimburse Afuri Franchise Inc. for renewal-related costs (with a minimum of $2,000) and complete any retraining that Afuri Franchise Inc. requires, at their own expense.
Training & Support Program
Franchisor Assistance
Before an Afuri franchise opens, Afuri Franchise Inc. designates the franchise territory and approves the proposed site and lease. They may offer reasonable advice for site selection if requested, with the franchisee covering associated expenses. Afuri Franchise Inc. provides an initial training program at its Portland, Oregon headquarters for the franchisee (or owners) and their General Manager, Kitchen Manager, Bar Manager, and Commissary Manager. This training is included in the initial franchise fee for the first franchise. Afuri Franchise Inc. also lends a confidential Operations Manual and provides a list of approved suppliers. After opening, Afuri Franchise Inc. continues to administer advertising programs and may conduct inspections to ensure compliance with quality standards. They may also inspect supplier facilities. Afuri Franchise Inc. may offer additional training upon request (at the franchisee's expense) and may require franchisees or their managers to attend refresher training programs or seminars (without a fee, but with the franchisee covering travel and living expenses).
Initial Training Hours
255
Training Location
Corporate headquarters and affiliate-owned restaurant in Portland, Oregon
Ongoing Support
After an Afuri franchise opens, Afuri Franchise Inc. provides ongoing support through its administration of advertising programs and national/regional promotion campaigns. It may conduct inspections of the franchise and its suppliers to ensure consistent quality and adherence to the system. Franchisees can request additional training (at their expense) and may be required to attend refresher training programs or seminars offered by Afuri Franchise Inc. without a fee, though franchisees must cover their own travel and living expenses. Afuri Franchise Inc. also maintains an online portal for sharing updates, recipes, and menu information, which franchisees are required to access using their own computer systems and high-speed internet. They also require the use of specific POS systems and approved merchant processors for credit card payments.
Franchise Requirements
Ideal Candidate Profile
Afuri Franchise Inc. seeks qualified individuals or entities to operate fast-casual restaurants. Ideal candidates are those who possess the knowledge and experience to conduct business with minimal assistance and are capable of multi-unit ownership. The franchisor relies on the candidate's character, skill, attitude, business ability, and financial capacity. Candidates or their principals should be in good health and able to devote their best efforts to operations or possess the business management skills necessary to successfully hire and oversee a general manager.
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Retail
Owner Participation
Supervisory
Territory Type
Protected
Territory Size Requirements
An Afuri franchise territory is typically defined by a mileage radius around the center of the franchise location. The standard radius is 5 miles, but this can be as small as 1/4 of a mile in dense downtown urban areas. Afuri Franchise Inc. determines the specific mileage radius based on factors like population, growth trends, local demographics, and topography.
Staffing Notes
Afuri Franchise Inc. requires the franchisee or one of its owners to be responsible for supervision and oversight of the Afuri franchise. If a manager is hired for day-to-day operations, the franchisee must still supervise the location and visit regularly. Mandatory initial training is provided for the franchisee (or owners) and the General Manager, Kitchen Manager, Bar Manager, and Commissary Manager, lasting approximately six weeks at the franchisor's headquarters and affiliate-owned restaurants in Portland, Oregon. This training is included in the initial franchise fee for the first franchise. All managers must successfully complete this training, or the franchisor may terminate the agreement. All other employees must complete a training program directed by the franchisee or a manager who has passed the franchisor's mandatory training. An individual who has passed the franchisor's initial training program must always operate and supervise the Afuri franchise. The franchisor provides an on-site trainer at the Afuri franchise for about 14 days during opening (7 days before and 7 days after). Afuri Franchise Inc. emphasizes that franchisees are independent contractors and are solely responsible for hiring, firing, scheduling, directing, supervising, disciplining, and setting wages and working conditions for their employees, and for complying with all labor laws. The franchisor does not post job openings or coordinate employee sharing among franchisees, nor does it provide employee handbooks.