When must a Benihana franchisee deliver the Gross Sales Statement to BNC?

According to Benihana's 2024 Franchise Disclosure Document, a franchisee must deliver a written statement of Gross Sales for the preceding calendar month to BNC on the fifteenth (15th) day of each month. If the 15th falls on a Saturday, Sunday, or holiday, the statement is due on the next business day. This statement, referred to as the "Gross Sales Statement," must be certified as accurate by the franchisee, a financial officer, or the franchisee's principal accountant responsible for overseeing the restaurant's financial records.

This requirement ensures that Benihana receives timely and accurate financial information from its franchisees, allowing them to calculate royalties and advertising contributions accurately. Franchisees need to maintain meticulous sales records and ensure that the Gross Sales Statement is prepared and submitted on time each month to comply with the franchise agreement.

Failure to submit the Gross Sales Statement on time can result in financial penalties. Benihana has the right to debit the franchisee's business operating account for 120% of the most recent Royalty and Advertising Contributions paid. This underscores the importance of adhering to the reporting deadlines to avoid potential financial repercussions and maintain a good standing with Benihana.