Who must complete the Statement of Prospective Franchisee before a Benihana franchise agreement is signed?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
EXHIBIT F TO BENIHANA NATIONAL CORP. FRANCHISE DISCLOSURE DOCUMENT
STATEMENT OF PROSPECTIVE FRANCHISEE
[TO BE COMPLETED BY ALL FRANCHISEES & GUARANTORS BEFORE SIGNING FRANCHISE AGREEMENT OR ANY EXHIBITS TO THE FRANCHISE AGREEMENT]
As you know, you and Benihana National Corp. ("BNC") are preparing to enter into a Franchise Agreement for the establishment and operation of a BENIHANA® Restaurant. The purpose of this Questionnaire is to determine whether any statements or promises were made to you by any BNC employee or representative that BNC has not authorized and that may be untrue, inaccurate, or misleading. Please review each of the following questions carefully and provide honest and complete responses to each question. The answers you provide in this Questionnaire are material to BNC, and BNC is relying on all such answers in agreeing to enter into a franchise relationship with you.
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2024 FDD)
According to Benihana's 2024 Franchise Disclosure Document, all franchisees and guarantors must complete the Statement of Prospective Franchisee before signing the franchise agreement or any exhibits attached to it. This form is crucial for Benihana because it helps them determine if any unauthorized statements or promises were made to the prospective franchisee by any of Benihana's employees or representatives.
The questionnaire is designed to uncover any untrue, inaccurate, or misleading information that may have been communicated during the franchise sales process. Benihana emphasizes that the answers provided in this questionnaire are material to their decision to enter into a franchise relationship. This means that Benihana relies on the accuracy and completeness of the responses when deciding whether to grant a franchise.
By requiring this statement, Benihana aims to ensure transparency and prevent misunderstandings or misrepresentations that could lead to disputes later on. It also serves as a form of due diligence, allowing Benihana to verify that the prospective franchisee's understanding of the franchise opportunity aligns with the information officially provided in the Franchise Disclosure Document and related agreements. This requirement is a protective measure for both Benihana and the franchisee, helping to establish a clear and mutually agreed-upon foundation for the franchise relationship.