What is the estimated cost range for purchasing the required computer system for a Benihana franchise?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
ion directly from your computer as we deem necessary.
The costs associated with purchasing your computer system ranges from $40,000 to $65,000. Please refer to Item 7 for more information. There are no contractual limitations on the frequency and cost of upgrading or updating your computer system. We estimate that you will incur up to $20,000 to $30,000 for annual ongoing
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 36–47)
What This Means (2024 FDD)
According to Benihana's 2024 Franchise Disclosure Document, the estimated initial cost for the computer system ranges from $40,000 to $65,000. This system includes a PC-based cash register, register tape printer, magnetic stripe reader, credit card devices that accept EMC chip cards, a cash drawer, defined polling and register software, and telecommunications equipment, along with any other state-of-the-art devices that Benihana requires.
Benihana franchisees are also responsible for any ongoing costs related to the computer system. The FDD estimates that franchisees will incur between $20,000 and $30,000 annually for updates, repairs, or upgrades to the computer system. Benihana retains the right to mandate new or upgraded software and equipment to ensure operational efficiency and communication capabilities, with the franchisee bearing the full cost.
Furthermore, Benihana has the right to access data and information directly from the franchisee's POS system as deemed necessary, and franchisees are responsible for the telephonic or transmission costs associated with this data retrieval. Franchisees must also comply with Payment Card Industry Data Security Standards Requirements (PCI DSS) and any other requirements specified by Benihana, providing proof of PCI compliance annually. Given the significant initial investment and ongoing maintenance costs, prospective franchisees should carefully consider these expenses when evaluating the financial feasibility of a Benihana franchise.