Is the Benihana franchisee required to staff the Restaurant with a sufficient number of trained employees?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
e by BNC.
- 3.4 Franchisee must designate and retain in its employment at all times a person to serve as the "General Manager" of the Restaurant. Franchisee shall at all times otherwise staff the Restaurant with a sufficient number of employees trained in the BENIHANA System as required by BNC. The General Manager must satisfy BNC's educational and business criteria and must be individually acceptable to BNC. In addition, the General Manager must be responsible for the supervision and management of the Restaurant, and must devote full time and best efforts to this activity. The General Manager also must satisfy BNC's applicable training requirements. If the General Manager ceases to be employed by Franchisee and available to manage the Restaurant, Franchisee must promptly, and in no event more than 120 days later, designate another person as General Manager, and that person must meet all criteria for a General Manager and be acceptable and approved 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 is indeed required to staff the restaurant with a sufficient number of employees who are trained in the Benihana system, as mandated by Benihana. Additionally, the franchisee must designate and retain a General Manager who meets Benihana's criteria and training requirements. This General Manager is responsible for the supervision and full-time management of the restaurant. If the General Manager leaves, the franchisee has 120 days to find a replacement approved by Benihana.
Benihana also provides access to its Operations Manual, which includes the Benihana University website, written manuals, and specifications. Benihana will provide initial training before the restaurant opens, as well as in-restaurant training for additional employees. Further ongoing training may be provided for chefs, general managers, and other personnel. The specifics of the initial and in-restaurant training will be agreed upon by both parties and outlined in Schedule 1-C of the agreement.
The franchisee is responsible for covering all expenses related to the initial and in-restaurant training, including wages, travel, lodging, meals, and other costs for their employees. All training programs will be held at locations and times designated by Benihana. Franchisees and designated employees may also be required to attend continuing courses and seminars, with the franchisee bearing all associated costs, including salaries, transportation, and lodging.
These requirements ensure that Benihana restaurants maintain consistent standards and quality of service. The franchisee's investment in training and staffing is crucial for upholding the brand's reputation and operational efficiency. The detailed guidelines and support provided by Benihana aim to equip franchisees with the necessary tools and knowledge to successfully manage their restaurants.