Does the Benihana franchisee acknowledge that no employee of BNC has made any statement that affiliated entities financially back BNC?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
- 21.4 Franchisee acknowledges that Franchisee is relying solely on BNC and not on any affiliated entity or parent company related to BNC regarding BNC's financial and other obligations under this Agreement, and no employee or other person speaking on behalf of, or otherwise representing BNC has made any statement or promise to the effect that any affiliated entities or parent companies guarantee BNC's performance or financially back BNC.
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2024 FDD)
According to Benihana's 2024 Franchise Disclosure Document, franchisees must acknowledge that they are relying solely on Benihana National Corp. (BNC) regarding its financial obligations under the Franchise Agreement. This means the franchisee agrees they are not relying on any affiliated entity or parent company of BNC.
The document stipulates that no employee or representative of BNC has made any statement or promise suggesting that affiliated entities or parent companies guarantee BNC's performance or provide financial backing. This acknowledgement is a crucial part of the agreement, ensuring that the franchisee understands the financial responsibility rests solely with BNC.
This provision aims to prevent misunderstandings about the financial stability and backing of the Benihana franchise. By acknowledging this, the franchisee confirms they have not been misled into believing that other entities are responsible for BNC's obligations. This protects both the franchisor and franchisee by clarifying the financial relationship and expectations from the outset.