Does the Benihana franchisee acknowledge that they are relying solely on BNC regarding BNC's financial obligations under the Agreement?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
EXHIBIT F TO BENIHANA NATIONAL CORP. FRANCHISE DISCLOSURE DOCUMENT
STATEMENT OF PROSPECTIVE FRANCHISEE
[TO BE COMPLETED BY ALL FRANCHISEES & GUARANTORS BEFORE SIGNING FRANCHISE AGREEMENT OR ANY EXHIBITS TO THE FRANCHISE AGREEMENT]
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, Exhibit F includes a statement of prospective franchisee that addresses the franchisee's reliance on BNC's statements. This statement requires the franchisee to acknowledge that BNC is relying on the franchisee's answers in agreeing to enter into a franchise relationship. The purpose of the questionnaire is to determine if any unauthorized statements or promises were made by any BNC employee or representative.
This means that Benihana wants to ensure that prospective franchisees are not relying on any representations made by the company's employees or representatives that are not authorized by BNC itself. This is a way for Benihana to protect itself from potential legal issues that could arise if a franchisee claims they were misled by an employee or representative.
As a prospective franchisee, it is important to carefully review the questionnaire and provide honest and complete responses to each question. This will help ensure that you are not relying on any unauthorized statements or promises and that you are fully aware of the terms and conditions of the franchise agreement. It is also advisable to seek legal counsel to review the franchise agreement and questionnaire before signing anything.