Must the Benihana franchisee use the location solely for the operation of the Restaurant?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
taurant will necessarily require certain deviations from the BENIHANA System or the BENIHANA Standards as approved by BNC in its sole discretion.
- 3.3 Franchisee shall use the Location solely for the operation of the Restaurant in strict accordance with the applicable BENIHANA Standards. The Restaurant shall be open and in operation for such minimum hours and days specified or approved by BNC in writing, which hours may be changed from time to time 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.
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2024 FDD)
According to Benihana's 2024 Franchise Disclosure Document, a franchisee must use the location solely for the operation of the Benihana Restaurant. The franchisee is not allowed to conduct any other business activity or operation at the restaurant location other than the operation of the Benihana Restaurant as permitted by the franchise agreement.
Benihana franchisees are also restricted from operating, permitting, or granting concessions or licenses for vending machines, video or entertainment machines, games of skill or chance, or other similar devices at the restaurant location without prior written consent from Benihana. This ensures that the franchisee focuses exclusively on the Benihana business and maintains the brand's intended atmosphere and offerings.
Furthermore, if the franchisee leases the location, Benihana may require the inclusion of a provision in the lease that restricts the use of the premises solely to the operation of a Benihana Restaurant. This provision would give Benihana further control over the use of the location and ensure that it is used only for the intended purpose.