Does the Benihana franchisee acknowledge reading and understanding the Franchise Agreement and its attachments?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
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| ] one hundred percent (100%) of the partners of the above FRANCHISEE limited or general | |
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This Guaranty is incorporated and made a part of a Franchise Agreement between FRANCHISEE and Benihana National Corp., a Delaware corporation, whose principal office address is 21500 Biscayne Boulevard, Suite 900, Aventura, Florida 33180 (hereinafter referred to as "FRANCHISOR") on the date specified above, and it will be attached to the Franchise Agreement.
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- Acknowledgments. GUARANTOR acknowledges and agrees that FRANCHISOR has entered into the Franchise Agreement with FRANCHISEE solely on the condition that each owner of FRANCHISEE be personally obligated and jointly and severally liable with FRANCHISEE (and with each other owner of FRANCHISEE) for the performance of each and every obligation of FRANCHISEE (and its owners) under the Franchise Agreement, any amendments or modifications to the Franchise Agreement, any extensions or renewals of the Franchise Agreement, and under each and every agreement ancillary to the Franchise Agreement, including any lease, that has been or hereafter may be entered by FRANCHISEE with FRANCHISOR (all of the aforementioned agreements are collectively referred to as the "BENIHANA Agreements").
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- GUARANTOR's Covenants, Representations and Guaranty. In consideration of and as an inducement to the execution of the Franchise Agreement by FRANCHISOR, Guarantor hereby personally, irrevocably and unconditionally:
- (a) represents and warrants to FRANCHISOR that the exhibits/attachments to the Franchise Agreement are accurate and complete;
- (b) agrees to guarantee the prompt payment and performance of all of FRANCHISEE's Obligations (as hereinafter defined) to FRANCHISOR and FRANCHISOR's successors and assigns; and
- (c) agrees to be personally bound by, and personally liable for the breach of each and every provision in the Franchise Agreement and each and every provision in any of the BENIHANA Agreements, as if GUARANTOR were the FRANCHISEE.
The term "Obligations"
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2024 FDD)
According to Benihana's 2024 Franchise Disclosure Document, the guarantor, who is typically an owner or principal of the franchisee, acknowledges and agrees that Benihana entered into the Franchise Agreement with the franchisee based on the condition that each owner is personally obligated and jointly and severally liable for the franchisee's obligations. This includes obligations under the Franchise Agreement, any amendments or modifications, extensions or renewals, and any ancillary agreements, such as leases.
The guarantor also represents and warrants to Benihana that the exhibits and attachments to the Franchise Agreement are accurate and complete. Furthermore, the guarantor agrees to guarantee the prompt payment and performance of all the franchisee's obligations to Benihana and its successors and assigns.
In essence, the guarantor commits to being personally bound by and liable for any breach of the Franchise Agreement and any related agreements, as if they were the franchisee. This arrangement ensures that Benihana has recourse to the personal assets of the franchisee's owners or principals, providing an additional layer of security for Benihana in the event of non-compliance or financial difficulties on the part of the franchisee.