Does the General Manager of a Benihana restaurant need to be acceptable to BNC?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
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 General Manager of a Benihana restaurant must be acceptable to BNC. The franchisee is required to designate and retain a General Manager who meets BNC's educational and business criteria. This individual must be responsible for the restaurant's supervision and management, dedicating their full time and effort to this role.
If the current General Manager leaves, the franchisee has 120 days to appoint a replacement who also meets BNC's criteria and receives their approval. This requirement ensures that the General Manager is qualified and capable of upholding Benihana's standards and operational procedures.
Furthermore, the General Manager, along with other personnel with access to confidential information, must sign covenants to maintain the confidentiality of proprietary information they receive during their employment. These covenants, with Benihana as a third-party beneficiary, give Benihana the independent right to enforce them. Franchisees must provide Benihana with copies of these executed covenants within five days of hiring the General Manager or relevant employees. This highlights the importance Benihana places on maintaining brand standards and protecting confidential information through qualified and approved management.