What is the estimated timeframe for a Benihana franchisee to open their restaurant after signing the Franchise Agreement?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
tion of the business.
Estimated Opening Time Period
Franchisees typically open their BENIHANA Restaurants within 18 months after signing the Franchise Agreement, and within 12 months after the site is approved by us. The factors affecting this time include the ability to locate a suitable site, negotiate a purchase or lease arrangement, obtain financing or building permits, compliance with
zoning and local ordinances, construction schedules, obtaining all required licenses, weather conditions, shortages, and delayed installation of equipment, fixtures, and signs.
Computer System
You must purchase, install, and maintain at your expense the ALOHA® POS System (see Item 7 Note 2). The POS System must contain a device that records accumulated sales and cannot be turned back or reset, and a back-up power system for memory storage in the event of power loss. The POS System will provide a record of products sold, a menu mix report, and other reports we require. We will have the right to retrieve the data and information directly from your POS System as we deem necessary. There are no contractual limitations on our right to access your computer information.
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, franchisees typically open their restaurants within 18 months after signing the Franchise Agreement, and within 12 months after the site is approved by Benihana.
Several factors can affect this timeframe, including securing a suitable site, negotiating purchase or lease arrangements, obtaining financing and building permits, complying with zoning and local ordinances, managing construction schedules, obtaining required licenses, dealing with weather conditions and shortages, and handling delayed equipment installation.
If a franchisee has not secured an approved location before signing the Franchise Agreement, they must find one, construct the restaurant according to Benihana's standards, and open for business within the same 18-month period from the agreement date. Failure to meet this deadline gives Benihana the right to terminate the Franchise Agreement immediately. This emphasizes the importance of efficient site selection and construction management for prospective franchisees.