Is a Benihana franchisee required to sell all menu items that Benihana requires?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
You must sell or offer for sale all menu items, food products, and other products and services we require, in the manner and style we require. You must sell and offer for sale only those menu items and other products and services that we have expressly approved in writing. You must not deviate from our standards and specifications without first obtaining our written consent. You must discontinue selling and offering for sale any menu items, products or services that we may disapprove in writing at any time. We have the right to change the types of menu items, products and services offered by you at the BENIHANA Restaurant at any time, and there are no limits on our right to make those changes.
You must maintain in sufficient supply and use and sell only the food and beverage items, ingredients, products, materials, supplies, and paper goods that conform to our standards and specifications. You must prepare all menu items with our recipes and procedures for preparation contained in the Manual or other written instructions, including the measurements of ingredients. You must not deviate from our standards and specifications by the use or offer of nonconforming items or differing amounts of any items, without first obtaining our written consent.
Source: Item 16 — RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL (FDD pages 58–59)
What This Means (2024 FDD)
According to Benihana's 2024 Franchise Disclosure Document, franchisees are required to sell all menu items, food products, and other services that Benihana mandates. These items must be offered in the manner and style that Benihana requires. Furthermore, franchisees are only permitted to sell menu items and other products and services that Benihana has expressly approved in writing. Franchisees must adhere to Benihana's standards and specifications, and any deviation requires prior written consent from Benihana. Benihana retains the right to change the types of menu items, products, and services offered at any time, without any limitations. Franchisees must also discontinue selling any items that Benihana disapproves of in writing.
This means a Benihana franchisee has limited autonomy over their restaurant's menu and offerings. They must strictly adhere to what Benihana dictates, ensuring uniformity across all franchise locations. This includes not only the items sold but also the manner in which they are presented and sold. The franchisee must maintain sufficient stock and exclusively use food and beverage items, ingredients, products, materials, supplies, and paper goods that meet Benihana's standards and specifications. All menu items must be prepared according to Benihana's recipes and procedures, including precise measurements of ingredients.
The franchisee must not deviate from these standards by using non-conforming items or differing amounts of any items without prior written consent. This ensures that the quality and consistency of the Benihana brand are maintained. The franchisee is also responsible for keeping the restaurant clean and well-maintained, making any necessary additions, alterations, repairs, and replacements as directed by Benihana. This includes repainting or replacing obsolete signs, furnishings, equipment, and décor.
Overall, this level of control allows Benihana to maintain brand consistency and quality across all locations, but it also means franchisees have limited flexibility in catering to local preferences or experimenting with new offerings without explicit approval from Benihana. Prospective franchisees should carefully consider these restrictions and ensure they are comfortable adhering to Benihana's standards and requirements.