What are the Benihana franchisee's obligations regarding the designation and replacement of a General Manager for the restaurant?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
- 3.5 Franchisee must designate, and retain in its employment, a person to serve as the "General Manager" of the Restaurant; and the General Manager must be responsible for, and devote his or her full time and best efforts to, supervision and management of the Restaurant.
Franchisee also must otherwise staff the Restaurant with a sufficient number of employees trained in the BENIHANA System as required by BNC.
- 3.5.1 The General Manager must satisfy BNC's educational and business criteria and applicable training requirements and be individually approved by BNC.
If the General Manager ceases to be employed by Franchisee or is otherwise unavailable 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 to and approved by BNC.
Source: Item 23 — Receipts (FDD pages 74–576)
What This Means (2024 FDD)
According to Benihana's 2024 Franchise Disclosure Document, franchisees must designate and retain a General Manager who is fully dedicated to supervising and managing the restaurant. This individual must meet Benihana's educational, business, and training criteria, and must be approved by Benihana National Corp (BNC). The General Manager is expected to devote their full time and best efforts to the restaurant's operations.
If the General Manager leaves employment or is otherwise unable to manage the restaurant, the franchisee is obligated to promptly designate a replacement, no later than 120 days after the vacancy. This replacement must also meet all the criteria for a General Manager and receive approval from BNC. This requirement ensures that each Benihana restaurant has a qualified and BNC-approved manager in place to maintain operational standards.
Furthermore, Benihana requires that the General Manager, along with other trained personnel or those with access to confidential information, sign confidentiality and restrictive covenant agreements. These agreements protect Benihana's trade secrets and business interests. Franchisees must provide BNC with copies of these executed agreements within five days of hiring the General Manager or other relevant employees. This stipulation underscores the importance Benihana places on protecting its confidential information and maintaining brand consistency across all franchise locations.