According to the Benihana franchise agreement, where will arbitration be administered?

Based on the 2024 Benihana Franchise Disclosure Document, the Guaranty agreement specifies that any claims related to the guaranty shall be governed by Florida law. Furthermore, the guarantor irrevocably submits to the jurisdiction of the United States District Court for the Southern District of Florida, which will serve as the venue and exclusive proper location.

This means that any legal disputes arising from the Guaranty, which is part of the Franchise Agreement, will be resolved in the federal court located in the Southern District of Florida, under Florida state law. This is where Benihana's principal office is located.

For a prospective Benihana franchisee, this clause is important because it dictates where they may have to travel and which laws will govern if a dispute arises related to the Guaranty. Franchisees should be aware of this location and the applicable laws, as it could impact the cost and convenience of resolving any legal issues. It is advisable to consult with a legal professional to fully understand the implications of this clause before signing the franchise agreement.