According to Benihana's 2024 Franchise Disclosure Document, the franchise agreement explicitly states that the franchisee is an independent contractor. Benihana franchisees acknowledge and agree that they are not acting as an agent, partner, joint venture, joint employer, or employee of Benihana. The agreement also specifies that no fiduciary relationship exists between the parties. This distinction is important as it clarifies the legal and financial responsibilities of both the franchisor and the franchisee.

As an independent contractor, the Benihana franchisee has the sole right to hire, discipline, discharge, and establish wages, hours, benefits, employment policies, and other terms and conditions of employment for their employees. This means the franchisee is responsible for managing their staff and ensuring compliance with all applicable labor laws. Benihana does not have control over these aspects of the franchisee's business operations.

This independent contractor relationship means that the success of the Benihana franchise largely depends on the franchisee's business acumen and management skills. While Benihana provides training, operational manuals, and ongoing support, the franchisee is ultimately responsible for the day-to-day operations and profitability of their restaurant. The franchisee's ability to effectively manage their employees, control costs, and market their business will be crucial factors in determining their success.