What is a Benihana franchisee required to devote to the management and operation of the Restaurant during the Franchise Term?

According to Benihana's 2024 Franchise Disclosure Document, franchisees must devote their full time, energy, and best efforts to the management and operation of the Restaurant during the Franchise Term, unless Benihana approves otherwise in writing. This requirement ensures that franchisees are fully committed to the success of their Benihana location and the brand as a whole.

This full-time commitment is a standard practice in franchising, as it ensures that the franchisee is actively involved in the day-to-day operations and strategic decision-making of the business. However, it's important to note the clause allowing Benihana to provide written approval for deviations from this requirement, which could offer some flexibility in certain circumstances.

In addition to the franchisee's commitment, Benihana also requires the franchisee to designate a General Manager who will be responsible for and devote their full time and best efforts to the supervision and management of the Restaurant. This General Manager must meet Benihana's educational, business, and training criteria and be approved by Benihana. This ensures that a qualified individual is always overseeing the Restaurant's operations, even if the franchisee is not directly involved at all times.