What must the Franchisee use in accordance with the Benihana Standards and the terms of the Agreement?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
3.3 Franchisee will use the Location solely for the operation of the Restaurant, and Franchisee must not, during the Franchise Term conduct, or permit others to conduct, any business activity at the Restaurant or the Location other than the operation of a BENIHANA Restaurant.
3.3.1 Franchisee will not operate, permit, or grant any concession or license to operate at the Restaurant or the Location any vending machines, video or entertainment machines, games of skill, games of chance, or other similar device, without the specific and prior written consent of BNC.
3.4 The Restaurant must be open for, at a minimum, the hours and days specified or approved by BNC in writing, which hours may be changed from time to time by BNC.
3.7 Franchisee may use in the Restaurant only those brands, types, and models of signs displaying the Marks, equipment, or fixtures approved by BNC and that meet all BNC specifications Franchisee must purchase approved brands, types, and models of equipment, fixtures, and signs only from approved suppliers, unless otherwise agreed in writing by BNC.
3.8 Franchisee must purchase, install, and maintain, at its expense, a point of sale data processing system and software as designated or approved from time to time by BNC (the "POS System).
The POS System must contain a device that records accumulated sales that cannot be turned back or reset, and it must include a back-up power system for memory storage in the event of power loss.
The POS System must provide a record of products sold, a menu mix report, and other reports required by BNC.
3.8.1 BNC has the right to retrieve all data and information directly from Franchisee's POS System as BNC deems necessary.
3.9 Franchisee may use only advertising and promotional materials or items approved by BNC in advance of Franchisee's use.
Franchisee must not use any menus, publicity, signs, decorations, furnishings, equipment, or other material using or displaying the Marks without BNC's prior written approval.
- 3.10 Franchisee must use or offer for sale at the Restaurant only those food and paper products, services, supplies, and packaging that BNC designates or approves in writing.
All such products and services, including the method and manner of sale, distribution, and delivery of such products, must meet the BENIHANA Standards.
- 3.11 Franchisee must, unless BNC specifically agrees otherwise in writing, acquire all products, supplies, equipment, and materials used for operating the Restaurant from suppliers designated or approved by BNC in writing.
Source: Item 23 — Receipts (FDD pages 74–576)
What This Means (2024 FDD)
According to Benihana's 2024 Franchise Disclosure Document, franchisees must adhere to specific requirements to maintain brand consistency and operational standards. Benihana requires franchisees to use the designated location solely for the operation of a Benihana Restaurant and prohibits conducting any other business activities there. Franchisees cannot operate or permit vending machines, video or entertainment machines, games of skill, or games of chance without prior written consent from Benihana. The restaurant must maintain the hours and days of operation specified or approved by Benihana, which may be changed by Benihana.
To ensure quality and uniformity, Benihana franchisees must use only approved brands, types, and models of signs displaying the Benihana marks, equipment, and fixtures that meet Benihana's specifications. These items must be purchased from approved suppliers unless Benihana agrees otherwise in writing. Franchisees are also required to purchase, install, and maintain a designated or approved point of sale (POS) data processing system and software. This system must record accumulated sales that cannot be reset and include a backup power system for memory storage. The POS system must provide records of products sold, a menu mix report, and other reports required by Benihana, who has the right to retrieve all data and information directly from the franchisee's POS system.
Furthermore, franchisees must use only advertising and promotional materials approved by Benihana in advance and must not use any menus, publicity, signs, decorations, furnishings, equipment, or other material displaying the marks without prior written approval. Franchisees must use or offer for sale only those food and paper products, services, supplies, and packaging that Benihana designates or approves in writing, ensuring they meet Benihana's standards. Franchisees are required to acquire all products, supplies, equipment, and materials from suppliers designated or approved by Benihana in writing, and Benihana may designate itself as a supplier of any item. These stipulations ensure that franchisees maintain the quality, appearance, and customer service standards associated with the Benihana brand.