To what governmental regulations are Benihana restaurants subject?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
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.
Government regulation can also affect customer traffic at our locations. A number of states, counties and cities have enacted menu labeling laws requiring multi-unit restaurant operators to disclose certain nutritional information. For example, the Affordable Care Act establishes a uniform, federal requirement for restaurant chains with 20 or more locations operating under the same trade name and offering substantially the same menus to post nutritional information on their menus, including the total number of calories. The law also requires such restaurants to provide to consumers, upon request, a written summary of detailed nutritional information, including total calories and calories from fat, total fat, saturated fat, cholesterol, sodium, total carbohydrates, complex carbohydrates, sugars, dietary fiber, and total protein in each serving size or other unit of measure, for each standard menu item. The Food and Drug Administration is also permitted to require additional nutrient disclosures, such as trans-fat content. Our compliance with the Affordable Care Act or other similar laws to which we may become subject could reduce demand for our menu offerings, reduce customer traffic and/or reduce average revenue per customer, which would have an adverse effect on our revenue. Any reduction in customer traffic related to these or other government regulations could affect revenues and adversely affect our business and results of operations.
We are subject to governmental regulation in the domestic and international jurisdictions where we operate, including antitrust and tax requirements, anti-boycott regulations, import/export/customs regulations and other international trade regulations, the USA PATRIOT Act and the Foreign Corrupt Practices Act. Any new regulatory or
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2024 FDD)
According to Benihana's 2024 Franchise Disclosure Document, Benihana restaurants are subject to various governmental regulations at the local, state, and federal levels. Benihana franchisees must operate their restaurants in compliance with all applicable laws. Compliance with these laws is a requirement of adhering to Benihana standards and the Benihana system. Franchisees are obligated to provide Benihana with any reports from governmental agencies related to the restaurant, including inspection reports from health departments or any agency with regulatory oversight, within five business days of receiving them.
Benihana is subject to governmental regulation in the domestic and international jurisdictions where it operates, including antitrust and tax requirements, anti-boycott regulations, import/export/customs regulations and other international trade regulations, the USA PATRIOT Act and the Foreign Corrupt Practices Act. New regulatory or trade initiatives could impact Benihana's operations in certain countries. Failure to comply with any such legal requirements could subject Benihana to monetary liabilities and other sanctions, which could harm its business, results of operations and financial condition.
Government regulation can also affect customer traffic at Benihana locations. A number of states, counties and cities have enacted menu labeling laws requiring multi-unit restaurant operators to disclose certain nutritional information. For example, the Affordable Care Act establishes a uniform, federal requirement for restaurant chains with 20 or more locations operating under the same trade name and offering substantially the same menus to post nutritional information on their menus, including the total number of calories. The law also requires such restaurants to provide to consumers, upon request, a written summary of detailed nutritional information, including total calories and calories from fat, total fat, saturated fat, cholesterol, sodium, total carbohydrates, complex carbohydrates, sugars, dietary fiber, and total protein in each serving size or other unit of measure, for each standard menu item. The Food and Drug Administration is also permitted to require additional nutrient disclosures, such as trans-fat content. Compliance with the Affordable Care Act or other similar laws to which Benihana may become subject could reduce demand for menu offerings, reduce customer traffic and/or reduce average revenue per customer, which would have an adverse effect on revenue. Any reduction in customer traffic related to these or other government regulations could affect revenues and adversely affect business and results of operations.