Does the Benihana franchisee acknowledge that no employee of BNC has made any statement that affiliated entities guarantee BNC's performance?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
As you know, you and Benihana National Corp. ("BNC") are preparing to enter into a Franchise Agreement for the establishment and operation of a BENIHANA® Restaurant. The purpose of this Questionnaire is to determine whether any statements or promises were made to you by any BNC employee or representative that BNC has not authorized and that may be untrue, inaccurate, or misleading. Please review each of the following questions carefully and provide honest and complete responses to each question. The answers you provide in this Questionnaire are material to BNC, and BNC is relying on all such answers in agreeing to enter into a franchise relationship with you.
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2024 FDD)
According to Benihana's 2024 Franchise Disclosure Document, prospective franchisees are required to complete a questionnaire to determine if any unauthorized statements or promises were made by Benihana National Corp. (BNC) employees or representatives. Benihana relies on the franchisee's answers in this questionnaire when agreeing to enter into a franchise relationship. This questionnaire aims to uncover any untrue, inaccurate, or misleading information that may have been communicated to the franchisee.
This process is designed to ensure transparency and prevent misunderstandings regarding the franchise agreement. By requiring franchisees to disclose any potentially misleading statements, Benihana seeks to avoid future disputes and maintain a clear understanding of the terms and conditions of the franchise. The questionnaire serves as a protective measure for both the franchisee and Benihana, ensuring that all parties are aligned on the actual commitments and obligations.
While the FDD excerpt confirms that a questionnaire is used to identify unauthorized statements, it does not specifically confirm whether one of the questions asks the franchisee to acknowledge that no employee of BNC has made any statement that affiliated entities guarantee BNC's performance. To confirm whether this specific question is included, a prospective franchisee should review the full questionnaire (Exhibit F) or directly ask Benihana.