Does Benihana have any control over the terms and conditions of employment of the franchisee's employees?

According to Benihana's 2024 Franchise Disclosure Document, Benihana does not have control over the terms and conditions of employment of the franchisee's employees. Benihana franchisees are considered independent contractors and are solely responsible for their employees.

As an independent contractor, the Benihana franchisee has the exclusive right to hire, discipline, discharge, and establish wages, hours, benefits, employment policies, and other terms and conditions of employment for its employees. This means the franchisee has complete autonomy in managing their staff and setting their employment terms without needing approval from Benihana.

This arrangement is typical in franchising, where franchisees operate as independent business owners. However, Benihana does require that the franchisee's General Manager meet certain educational, business, and training criteria and be approved by Benihana. Additionally, Benihana requires the franchisee to ensure that certain employees, such as the General Manager and those receiving training from Benihana or having access to confidential information, execute confidentiality and restrictive covenant agreements. Benihana can also specify that these agreements identify Benihana as a third-party beneficiary with the right to enforce them, and the franchisee must provide copies of these agreements to Benihana.