What must a Benihana franchisee include with the unaudited financial statement submitted to BNC?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
- (b) within ninety (90) days following the end of each fiscal year during the Franchise Term, an unaudited financial statement for the preceding fiscal year with such detail and in a format as specified by BNC, together with a certificate executed by Franchisee certifying that such financial statement is true and accurate;
- (c) copies of Franchisee's operating reports submitted to Franchisee's landlord if required under Franchisee's lease, simultaneously with Franchisee's submission of such reports to Franchisee's landlord;
- (d) copies of Franchisee's local, state or federal income tax returns and any local, state, or federal sales tax returns; and
- (e) such other forms, reports, records, information, and data as BNC may reasonably designate.
- 8.3 Along with each report required under this Article 8, Franchisee must submit a certificate signed by Franchisee certifying that the financial or other information provided is true and accurate.
Source: Item 23 — Receipts (FDD pages 74–576)
What This Means (2024 FDD)
According to Benihana's 2024 Franchise Disclosure Document, a franchisee must submit an unaudited financial statement for the preceding fiscal year to BNC within 90 days of the fiscal year's end. This statement must include the level of detail and format specified by Benihana.
Along with the financial statement, the franchisee must include a certificate confirming that the financial statement is accurate and truthful. This certificate needs to be executed by the franchisee.
Benihana also requires franchisees to submit other financial documents, such as copies of operating reports submitted to the landlord (if required by the lease), copies of local, state, or federal income tax returns, and sales tax returns. Additionally, franchisees must provide any other forms, reports, records, information, and data that Benihana may reasonably request.