Is a Benihana company-owned restaurant required to pay the 2% of Gross Sales advertising contribution?

According to Benihana's 2024 Franchise Disclosure Document, company-owned restaurants are not required to pay the advertising contribution. All franchisees who purchase a franchise under the current offering are required to pay an advertising contribution of 2% of gross sales each month.

Benihana does not have a national advertising fund created, nor do they intend to create one. Benihana is not obligated to conduct any advertising. The advertising contributions paid by franchisees may be co-mingled with Benihana's general funds.

Benihana intends to use advertising contributions for expenses related to brand advertising, public relations, and in-store, local, national, or regional advertising placed by them. Benihana has no obligation to make expenditures for franchisees that are equivalent or proportionate to advertising contributions paid or to ensure that franchisees benefit directly or on a pro rata basis from expenditures of advertising contributions. As of the date of the 2024 Disclosure Document, in Benihana's last fiscal year, their expenses for marketing, advertising, trademark maintenance, and public relations exceeded the amount of advertising contributions they received from franchisees. Benihana does not make available for review specific financial information related to advertising contribution expenditures, and franchisees will not receive a periodic accounting of advertising contribution expenditures. Benihana may, in its sole discretion, use the advertising contributions principally to solicit new franchise sales.