What is the cure period for a Benihana franchisee who fails to obtain and maintain the required insurance?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
- (r) Franchisee fails to obtain and maintain all insurance required under Article 12 of this Agreement, with all required terms and policy provisions as required by this Agreement.
The cure period for an act of default under this provision is ten (10) days after notice by BNC.
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2024 FDD)
According to Benihana's 2024 Franchise Disclosure Document, if a franchisee fails to obtain and maintain the required insurance as outlined in Article 12 of the franchise agreement, they have ten days to correct the issue after receiving notice from Benihana.
This means that if Benihana notifies a franchisee that they are not in compliance with the insurance requirements, the franchisee has a limited time to obtain the necessary insurance coverage to avoid further action from the franchisor. Failure to meet this deadline could result in the termination of the franchise agreement.
It is important for prospective Benihana franchisees to understand the insurance requirements detailed in Article 12 and ensure they can consistently meet these obligations. Maintaining proper insurance is a standard requirement in franchising to protect both the franchisee and franchisor from potential liabilities and financial losses.