Does the guarantor waive the right to a jury trial for claims relating to the Benihana Agreements?

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 involves the guarantor, such as a claim related to the financial obligations of the franchisee, the guarantor cannot demand a jury trial. The case would be decided by a judge. This can streamline the legal process but also means the guarantor forgoes the potential benefits of having a jury of peers hear the case.

Such waivers are relatively common in franchise agreements, as they can reduce the time and expense of resolving disputes. However, prospective guarantors should fully understand the implications of waiving their right to a jury trial and consult with an attorney to assess the risks and benefits before signing the Guaranty.