Does the guarantor waive the right to a jury trial for claims related to the Benihana Agreements?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
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- Waiver of Right to Jury Trial. GUARANTOR expressly waives the right to trial by jury of any claims relating directly or indirectly to this Guaranty and/or the BENIHANA Agreements, the negotiation of the Guaranty and/or the BENIHANA Agreements, or the business relationship relating to or arising out of the Guaranty and/or the BENIHANA Agreements.
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2024 FDD)
According to Benihana's 2024 Franchise Disclosure Document, a guarantor expressly waives the right to a jury trial for any claims that relate directly or indirectly to the Guaranty, the Benihana Agreements, the negotiation of these agreements, or the business relationship arising from them. This waiver is a significant legal commitment.
In practical terms, this means that if a dispute arises that leads to a lawsuit involving the guaranty, the guarantor will not have the option of having the case decided by a jury. Instead, the case will be heard and decided by a judge. This can impact the strategy and potential outcome of any legal proceedings.
Such waivers are relatively common in franchise agreements, as they offer the franchisor more control over the dispute resolution process. Prospective Benihana franchisees who are asked to act as guarantors should carefully consider this waiver and consult with an attorney to understand the full implications before signing the Guaranty.