What exhibit contains the copy of the guarantee of The ONE Group Hospitality, Inc. for the Benihana franchise?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
Our parent corporation, The ONE Group Hospitality, Inc., a Delaware corporation traded on NASDAQ, with a principal business address at 1624 Market Street, Suite 311, Denver, Colorado 80202 ("The ONE Group"), absolutely and unconditionally guarantees BNC's duties and obligations under any Franchise Agreement entered into with a franchisee buying a franchise pursuant to this Disclosure Document. Attached to this Disclosure Document as Exhibit E are the audited consolidated balance sheets of The ONE Group as of for the fiscal years ended December 31, 2023, December 31, 2022, and December 31, 2021; and the related consolidated statements of earnings, stockholder's equity, and cash flow of The ONE Group for the fiscal years ended December 31, 2023, December 31, 2022, and December 31, 2021. A copy of the guarantee of The One Group Hospitality, Inc. is included as Exhibit H.
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 72–73)
What This Means (2024 FDD)
According to Benihana's 2024 Franchise Disclosure Document, a copy of the guarantee from The ONE Group Hospitality, Inc., which is the parent corporation, ensuring Benihana National Corp's obligations under the Franchise Agreement, is included as Exhibit H. This guarantee signifies that The ONE Group Hospitality, Inc. will assume the duties and obligations of Benihana National Corp. under the franchise agreement.
This guarantee is important for prospective Benihana franchisees because it provides an additional layer of financial security. It means that the parent company, The ONE Group Hospitality, Inc., is backing the financial obligations of its subsidiary, Benihana National Corp., under the franchise agreement. This can be particularly reassuring for franchisees, especially when making a significant investment in a franchise.
The guarantee remains effective until all obligations of Benihana National Corp. under the franchise registrations and the Franchise Agreement are satisfied or until the liability of Benihana National Corp. to its franchisees under the Franchise Agreement has been completely discharged. The ONE Group Hospitality, Inc. is not released from liability if a claim by a franchisee against Benihana National Corp. remains outstanding, providing continued protection for the franchisee.
Prospective franchisees should carefully review Exhibit H to fully understand the terms and conditions of the guarantee, including any limitations or exclusions. Understanding the extent of the parent company's guarantee can help franchisees assess the overall financial stability and commitment behind the Benihana franchise.