factual

Can a Benihana franchisee deviate from Benihana's standards and specifications without written consent?

Benihana Franchise · 2024 FDD

Answer from 2024 FDD Document

You must sell or offer for sale all menu items, food products, and other products and services we require, in the manner and style we require. You must sell and offer for sale only those menu items and other products and services that we have expressly approved in writing. You must not deviate from our standards and specifications without first obtaining our written consent. You must discontinue selling and offering for sale any menu items, products or services that we may disapprove in writing at any time. We have the right to change the types of menu items, products and services offered by you at the BENIHANA Restaurant at any time, and there are no limits on our right to make those changes.

You must maintain in sufficient supply and use and sell only the food and beverage items, ingredients, products, materials, supplies, and paper goods that conform to our standards and specifications. You must prepare all menu items with our recipes and procedures for preparation contained in the Manual or other written instructions, including the measurements of ingredients. You must not deviate from our standards and specifications by the use or offer of nonconforming items or differing amounts of any items, without first obtaining our written consent.

You must keep the BENIHANA Restaurant very clean and maintain it in good repair and condition. You must make any additions, alterations, repairs and replacements, including repainting or replacement of obsolete signs, furnishings, equipment, and décor, as we may reasonably direct. You must not make any changes to the Restaurant or premises without our prior written consent. You must, at your expense, obtain and pay for any new or additional equipment, including a POS System, computer hardware and software, fixtures, supplies and other products and materials that you must have to offer and sell new menu items from the BENIHANA Restaurant or to provide services at the BENIHANA Restaurant by alternative means, such as through carryout, catering or delivery arrangements.

Source: Item 16 — RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL (FDD pages 58–59)

What This Means (2024 FDD)

According to Benihana's 2024 Franchise Disclosure Document, franchisees must adhere to Benihana's standards and specifications. Specifically, a franchisee cannot deviate from these standards without obtaining prior written consent from Benihana. This requirement extends to all aspects of the business, including menu items, food products, and other products and services offered.

This means that a Benihana franchisee must sell or offer only those items that Benihana has expressly approved in writing and in the manner and style that Benihana requires. The franchisee must also maintain sufficient supplies of food, beverage items, ingredients, products, materials, supplies, and paper goods that conform to Benihana's standards and specifications. Furthermore, all menu items must be prepared according to Benihana's recipes and procedures, including precise measurements of ingredients.

The franchisee is also prohibited from using nonconforming items or differing amounts of any items without first obtaining written consent from Benihana. This ensures uniformity and quality control across all Benihana restaurants. Benihana retains the right to change the types of menu items, products, and services offered at any time, without any limitations.

In addition to product and service standards, franchisees must maintain the Benihana Restaurant in a clean and well-repaired condition. Any changes to the restaurant or premises, including additions, alterations, repairs, and replacements, require Benihana's prior written consent. This includes repainting, replacing obsolete signs, furnishings, equipment, and décor. Franchisees are responsible for obtaining and paying for any new or additional equipment needed to offer new menu items or services.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.