Does the Benihana franchisee need written approval from BNC to change the minimum hours of operation?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
The Restaurant shall be open and in operation for such minimum hours and days specified or approved by BNC in writing, which hours may be changed from time to time by BNC.
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2024 FDD)
According to Benihana's 2024 Franchise Disclosure Document, the franchisee must operate the restaurant for the minimum hours and days specified or approved by BNC (Benihana National Corporation) in writing. These hours can be changed by Benihana from time to time. This means that a Benihana franchisee cannot unilaterally change the minimum operating hours without written approval from Benihana.
This requirement ensures that all Benihana restaurants maintain consistent service hours, which helps to build brand reputation and customer expectations. By controlling the minimum hours of operation, Benihana can ensure that restaurants are open during peak times and that customers can rely on consistent service regardless of location.
For a prospective franchisee, this means that they must adhere to the operating hours set by Benihana unless they obtain written permission to modify them. This could impact the franchisee's flexibility in responding to local market conditions or personal preferences regarding business hours. It is important to discuss the typical operating hours and the process for requesting changes with Benihana during the due diligence phase to fully understand the implications.