What happens if the Benihana franchisee and their trainees do not complete the pre-opening training program to Benihana's satisfaction?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
You must complete the pre-opening training program to our satisfaction. The preopening training program, which is subject to change as we determine, generally consists of two components, "Initial Training" and "In Restaurant" training. The Initial Training requires each trainee to work in a BENIHANA Restaurant for a period of eight to 12 weeks, or until the trainee is properly trained to our reasonable satisfaction. If you and your required trainees do not complete the pre-opening training program to our satisfaction, we will postpone the opening of your BENIHANA Restaurant until the trainee completes the program to our satisfaction. No postponements for training will extend the time period in which you must open your BENIHANA Restaurant.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 36–47)
What This Means (2024 FDD)
According to Benihana's 2024 Franchise Disclosure Document, if a franchisee and their required trainees do not complete the pre-opening training program to Benihana's satisfaction, the opening of the Benihana restaurant will be postponed. This postponement will occur until the trainee completes the program to Benihana's satisfaction.
However, the FDD stipulates that these postponements for training will not extend the overall timeframe in which the franchisee is required to open their Benihana restaurant. This means that while the opening may be delayed due to incomplete training, the franchisee is still bound by the original agreement to open within a specific period.
This condition underscores the importance of thorough preparation and successful completion of the training program. Franchisees should ensure that they and their trainees are fully committed to the training and allocate sufficient time and resources to meet Benihana's standards. Failure to do so could result in a delayed opening, potentially impacting revenue projections and increasing pre-opening expenses, without any extension to the deadline for opening the restaurant.