What is the estimated range for the cost of equipment, furniture, and fixtures for a Benihana franchise, and when is payment due?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
INVESTMENT (CONCESSION MODEL RESTAURANT)**
| TYPE OF | AMOUNT | METHOD OF | WHEN DUE | TO WHOM |
|---|---|---|---|---|
| EXPENDITURE | PAYMENT | PAYMENT IS TO BE MADE | ||
| Initial Franchise | $40,000 | Lump Sum | At signing of | Us |
| Fee | franchise agreement | |||
| Travel and Living | $25,000 to | As incurred | During | Airlines, hotels, and |
| Expenses while | $50,000 | Training | restaurants | |
| Training | ||||
| Real Estate and | $176,000 to | (Note 1) | (Note 1) | (Note 1) |
| Improvements | $415,000 | |||
| (Leased) | ||||
| Equipment, | $185,000 to | Lump Sum | Prior to | Vendors |
| Furniture & | $295,000 | Opening | ||
| Fixtures | (Note 2) | |||
| Opening | $40,000 | Lump Sum | Prior to | Vendors |
| Inventory | (Note 3) | Opening | ||
| Liquor License | $0 (Note 4) | N/A | N/A | Owner of License |
| Insurance | $50,000 (Note 5) | Lump Sum | Prior to Opening | Insurance carrier |
| Additional Funds | $100,000 to $200,000 (Note 6) | As Incurred | As Incurred | Employees, utilities, suppliers |
| TOTAL | $616,000 to | |||
| MINIMUM |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 21–28)
What This Means (2024 FDD)
According to Benihana's 2024 Franchise Disclosure Document, the cost for equipment, furniture, and fixtures (FF&E) varies depending on the franchise model. For a Concession Model Benihana Restaurant, the estimated cost for FF&E is between $185,000 and $295,000. For a typical Benihana Restaurant, the estimated cost for FF&E is between $500,000 and $700,000.
Payment for these items is due prior to opening the Benihana Restaurant. The FDD indicates that payment is made in a lump sum to the vendors.
Prospective franchisees should consider these costs carefully when evaluating the financial feasibility of opening a Benihana franchise. The range in cost reflects differences in restaurant size, and the availability and number of vendors may also affect the final amount. Franchisees will need to negotiate delivery, payment, and refund terms with the suppliers of these items.