factual

Is a Benihana franchisee required to submit copies of operating reports to Benihana that were also submitted to the franchisee's landlord?

Benihana Franchise · 2024 FDD

Answer from 2024 FDD Document

  • 3.19 Franchisee must operate the Restaurant in compliance with all applicable local, state, and federal laws, and compliance with those laws is a requirement of compliance with the BENIHANA Standards and the BENIHANA System. Franchisee must provide to BNC, with five (5) business days of receipt by Franchisee, all reports of any governmental agency related to the Restaurant, specifically including, but not limited to, reports of inspections by any health department or any agency with regulatory or supervisory jurisdiction over the Restaurant.

Source: Item 22 — CONTRACTS (FDD pages 73–74)

What This Means (2024 FDD)

According to Benihana's 2024 Franchise Disclosure Document, franchisees are required to provide Benihana with copies of reports from governmental agencies, but the FDD does not state that franchisees must submit copies of operating reports provided to their landlord.

Specifically, Benihana franchisees must provide Benihana with all reports from any governmental agency related to the restaurant within five business days of receipt. This includes, but is not limited to, reports of inspections by any health department or any agency with regulatory or supervisory jurisdiction over the Restaurant.

The FDD does not mention any requirement to submit reports given to the landlord, so prospective franchisees should confirm with Benihana whether such a requirement exists.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.