Is a Benihana franchisee required to maintain the restaurant in good condition and repair, and what does this maintenance include?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
- 3.6 Franchisee must, at its expense, continuously during the Franchise Term, maintain the Restaurant in good condition and repair in accordance with the BENIHANA Standards.
The required maintenance, includes, but is not limited to, the replacement of worn carpeting or flooring, repainting and repair of walls, floors, wood trims, or ceilings, as needed, or the repair, refurbishment, or replacement of any damaged or worn fixtures, furniture, or decorative items, including all components of BNC's trade dress.
Source: Item 23 — Receipts (FDD pages 74–576)
What This Means (2024 FDD)
According to Benihana's 2024 Franchise Disclosure Document, franchisees are responsible for maintaining the restaurant in good condition and repair throughout the franchise term, adhering to Benihana standards. This maintenance is an ongoing obligation, and the franchisee bears the expense.
The required maintenance includes replacing worn carpeting or flooring, repainting and repairing walls, floors, wood trims, and ceilings as needed. It also extends to repairing, refurbishing, or replacing any damaged or worn fixtures, furniture, and decorative items, including all components of Benihana's trade dress. This ensures that the restaurant consistently reflects the brand's image and standards.
Failure to maintain the restaurant to Benihana's standards can result in default under the franchise agreement. Specifically, if a franchisee fails to repair and maintain the restaurant, including its furniture, fixtures, equipment, or signage, to the required standards, it constitutes a breach of contract. Benihana would then provide notice to the franchisee, who typically has a limited time to rectify the situation and avoid further penalties or termination of the franchise agreement.