What administrative fee must a Benihana franchisee pay to renew the franchise agreement?

According to Benihana's 2024 Franchise Disclosure Document, a franchisee seeking to renew their franchise agreement must pay an administrative fee. This fee is equal to 20% of the then-current franchise fee at the time of the franchise agreement's expiration.

In addition to the administrative fee, the franchisee must also meet several other conditions to qualify for renewal. These include providing all other information and documentation reasonably requested by Benihana. The franchisee must also sign a general release of all existing claims against Benihana and its affiliates. Furthermore, the franchisee must satisfy all outstanding monetary obligations owed to Benihana and its affiliates.

These conditions are typical in franchise renewals, as franchisors want to ensure compliance and resolve any outstanding issues before extending the agreement. The administrative fee compensates Benihana for the administrative costs associated with processing the renewal and updating the franchise agreement. The release protects Benihana from potential future claims arising from the previous term of the franchise agreement. Meeting all monetary obligations ensures the franchisee is in good financial standing with the company.