What criteria must the General Manager of a Benihana restaurant satisfy?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
in operation for such minimum hours and days specified or approved by BNC in writing, which hours may be changed from time to time by BNC.
- 3.4 Franchisee must designate and retain in its employment at all times a person to serve as the "General Manager" of the Restaurant. Franchisee shall at all times otherwise staff the Restaurant with a sufficient number of employees trained in the BENIHANA System as required by BNC. The General Manager must satisfy BNC's educational and business criteria and must be individually acceptable to BNC. In addition, the General Manager must be responsible for the supervision and management of the Restaurant, and must devote full time and best efforts to this activity. The General Manager also must satisfy BNC's applicable training requirements.
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2024 FDD)
According to Benihana's 2024 Franchise Disclosure Document, a franchisee must designate a General Manager for the restaurant who meets specific criteria set by Benihana. The General Manager must satisfy Benihana's educational and business criteria and must be individually acceptable to Benihana. This indicates that Benihana has the right to approve or reject a franchisee's choice of General Manager based on their assessment of the candidate's qualifications and suitability.
In addition to meeting Benihana's criteria, the General Manager must be responsible for the supervision and management of the restaurant, dedicating their full time and best efforts to this role. This highlights the importance Benihana places on having a dedicated and capable manager overseeing the daily operations of the restaurant. The General Manager also needs to satisfy Benihana's applicable training requirements, suggesting that Benihana provides specific training programs that the General Manager must complete.
If the General Manager leaves their position, the franchisee has 120 days to designate a replacement. The replacement General Manager must also meet all the criteria for a General Manager and be approved by Benihana. This ensures that the restaurant always has a qualified manager in place and that Benihana maintains control over the selection process. Furthermore, the General Manager, along with other employees with access to confidential information, must sign covenants to maintain the confidentiality of the information they receive during their employment, with Benihana as a third-party beneficiary with the right to enforce these covenants.