Does the FDD specify the format for the unaudited financial statement that a Benihana franchisee must submit?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
- (b) within ninety (90) days following the end of each fiscal year during the Franchise Term, an unaudited financial statement for the preceding fiscal year with such detail and in a format as specified by BNC, together with a certificate executed by Franchisee certifying that such financial statement is true and accurate;
Source: Item 23 — Receipts (FDD pages 74–576)
What This Means (2024 FDD)
According to Benihana's 2024 Franchise Disclosure Document, franchisees are required to submit an unaudited financial statement each fiscal year. This statement must be submitted within 90 days following the end of each fiscal year and must be in a format specified by Benihana. The franchisee must also certify that the financial statement is true and accurate.
This requirement ensures that Benihana has access to consistent and reliable financial information from all its franchisees, allowing them to monitor the financial health of the franchise system. The level of detail required in the financial statement is determined by Benihana, giving them the flexibility to request specific information relevant to their business needs.
For a prospective franchisee, this means they need to be prepared to provide detailed financial information to Benihana on a regular basis and in a format that Benihana dictates. It is important to understand what specific information and format Benihana requires for these financial statements to ensure compliance and avoid any potential issues.