Where can I find 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, the guarantee of performance by The ONE Group Hospitality, Inc., Benihana's ultimate parent entity, is included as Exhibit H. Item 21 of the FDD also mentions that The ONE Group Hospitality, Inc. absolutely and unconditionally guarantees Benihana National Corp's duties and obligations under any Franchise Agreement entered into with a franchisee.
This guarantee assures franchisees that The ONE Group Hospitality, Inc. will assume the duties and obligations of Benihana National Corp. under the franchise agreement. This protection remains in effect until all obligations of Benihana National Corp. are satisfied or the liability to its franchisees has been completely discharged.
This guarantee is significant for prospective franchisees as it provides an additional layer of financial security. It means that even if Benihana National Corp. faces financial difficulties, The ONE Group Hospitality, Inc., as the guarantor, is obligated to fulfill the franchisor's responsibilities under the franchise agreement. The guarantee is binding on The ONE Group Hospitality, Inc. and its successors and assigns, offering long-term assurance to franchisees.