What must a Benihana franchisee do if they no longer employ the General Manager?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
If the General Manager ceases to be employed by Franchisee and available to manage the Restaurant, Franchisee must promptly, and in no event more than 120 days later, designate another person as General Manager, and that person must meet all criteria for a General Manager and be acceptable and approved by BNC.
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD pages 57–58)
What This Means (2024 FDD)
According to Benihana's 2024 Franchise Disclosure Document, a franchisee must promptly designate another person as General Manager if the current one ceases to be employed. This must occur no more than 120 days after the previous General Manager's departure. The replacement General Manager must meet all of Benihana's criteria for the position and must be acceptable and approved by Benihana.
This requirement ensures that each Benihana restaurant has a qualified and approved manager overseeing operations. The General Manager is responsible for the supervision and management of the restaurant, devoting full time and best efforts to this role. They must also satisfy Benihana's educational, business, and training requirements.
The franchisee also needs to ensure that the new General Manager signs the necessary confidentiality and non-compete agreements. These agreements protect Benihana's confidential information and prevent competition. The franchisee must provide Benihana with copies of these executed agreements within five days of hiring the new General Manager. This requirement helps Benihana maintain consistency and protect its brand standards across all franchise locations.