For Benihana, what expenses is the franchisee responsible for regarding BNC personnel providing In-Restaurant Training?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
- 5.3.1 In-Restaurant Training will be for a period BNC deems necessary to prepare for opening the Restaurant.
There will be no additional fee for In-Restaurant Training, but Franchisee will be responsible for all travel, living, and lodging expenses for BNC's personnel providing In-Restaurant Training.
- 5.3.2 At Franchisee's request and subject to BNC's prior approval and availability, additional BNC personnel may be made available to assist with In-Restaurant Training, provided that Franchisee reimburses BNC for the salaries and wages of such additional personnel.
Additionally, if Franchisee requests that In-Restaurant Training be provided for more than twenty (20) working days, Franchisee will pay all salaries, wages, travel expenses, and living and lodging expenses of BNC's personnel during the extended In-Restaurant Training Period.
Source: Item 23 — Receipts (FDD pages 74–576)
What This Means (2024 FDD)
According to Benihana's 2024 Franchise Disclosure Document, while there is no additional fee for In-Restaurant Training, the franchisee is responsible for covering certain expenses for Benihana personnel. Specifically, the franchisee must pay for all travel, living, and lodging expenses incurred by Benihana's personnel while they are providing In-Restaurant Training. This means franchisees need to budget for transportation costs (flights, car rentals, etc.), accommodation, and daily living expenses (meals, incidentals) for the trainers.
If the franchisee requests additional Benihana personnel to assist with the In-Restaurant Training, the franchisee must reimburse Benihana for the salaries and wages of these additional personnel. Furthermore, if the franchisee requests that the In-Restaurant Training extends beyond twenty working days, the franchisee is responsible for covering all salaries, wages, travel expenses, and living and lodging expenses for Benihana's personnel during this extended training period. This could significantly increase the franchisee's financial obligations, so careful planning and efficient use of the initial training period are important.
These expenses are in addition to the franchisee's costs of sending their own staff to the initial training program. It is common practice in franchising for the franchisee to bear the costs of travel, lodging, and meals for their own personnel attending training, but Benihana also requires the franchisee to cover these costs for the franchisor's staff during in-restaurant training. This is an important consideration for prospective franchisees as it can add a substantial expense during the pre-opening phase.