What expenses is a Benihana franchisee responsible for in connection with Ongoing Training?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
We have the right to require you and certain of your employees to attend continuing courses, seminars, and other training programs ("Ongoing Training") as we may require from time to time. We may require you or your employees to attend additional training programs at either our principal place of business, at your BENIHANA Restaurant, or at a designated BENIHANA Restaurant, as we determine in its sole discretion. You will be responsible for all expenses incurred in connection with Ongoing Training, including, without limitation, the cost of salaries or wages, transportation, lodging and meals for our employees conducting the training. If we decide to conduct any Ongoing Training at your BENIHANA Restaurant, you must reimburse us for the reasonable out-of-pocket expenses incurred by our training instructors in providing Ongoing Training, including but not limited to travel expenses, food and lodging, and auto rental.
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 are responsible for covering all expenses related to Ongoing Training programs that Benihana may require for the franchisee and their employees. This includes the costs of salaries or wages, transportation, lodging, and meals for the franchisee's employees attending the training.
If Benihana decides to conduct the Ongoing Training at the franchisee's restaurant, the franchisee must reimburse Benihana for the reasonable out-of-pocket expenses incurred by Benihana's training instructors. These expenses include, but are not limited to, travel, food, lodging, and auto rental.
This means that franchisees need to budget not only for the direct costs of training their staff but also for potential reimbursements to Benihana for their trainers' expenses. This could significantly increase the overall cost of training, especially if the training is held at the franchisee's location and requires multiple instructors and extended periods.