What is the amount of the initial non-refundable franchise fee that a Benihana franchisee must pay upon acceptance and execution of the Franchise Agreement?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
the sole and exclusive right, in BNC's sole discretion, at BNC's own cost and expense, and for BNC's own use and benefit, to initiate suit or take other action BNC deems proper to restrain any infringeme
Source: Item 23 — Receipts (FDD pages 74–576)
What This Means (2024 FDD)
According to Benihana's 2024 Franchise Disclosure Document, a new franchisee must pay an initial, non-refundable franchise fee of $40,000. This fee is due in full to Benihana upon the company's acceptance and execution of the Franchise Agreement.
This initial franchise fee is a standard practice in the franchise industry. It compensates Benihana for granting the franchisee the rights to operate under its brand, use its system, and receive initial training and support. Because the fee is non-refundable, a prospective franchisee should carefully evaluate the opportunity and their own capabilities before signing the agreement.
It is important to note that this $40,000 fee is just one of the initial investments required to open a Benihana franchise. Other costs, such as real estate, construction, equipment, and initial marketing expenses, can significantly increase the total investment. A prospective franchisee should carefully review Item 7 of the FDD, which provides a detailed breakdown of all estimated initial costs.