If I answer 'Yes' to any of questions 5 through 12 in the Benihana questionnaire, what am I obligated to do?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
| If you have answered "Yes" to any of questions 5 through 12, please provide a full | explanation by attaching an additional page. You understand that your answers are | important to us and that we will rely on them. | If there are any matters inconsistent with the answers I provided in this document, or if | anyone has suggested that I sign this document without all of its statements being true, | correct and complete, I/we will (a) immediately inform the Franchisor's General Counsel | and an officer of the Franchisor and (b) make a written statement regarding such next to my | signature below so that the Franchisor may address and resolve any such issue(s) at this time | and before either party goes forward.
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2024 FDD)
According to Benihana's 2024 Franchise Disclosure Document, if a prospective franchisee answers 'Yes' to any of questions 5 through 12 on the Statement of Prospective Franchisee questionnaire, they must provide a full explanation by attaching an additional page to the document. Benihana emphasizes that these answers are important and that the company will rely on them when deciding whether to move forward with the franchise relationship.
Additionally, the franchisee must immediately inform Benihana's General Counsel and an officer of the company if there are any inconsistencies with the answers provided in the document, or if anyone has suggested signing the document without all statements being true, correct, and complete. The franchisee must also make a written statement regarding such inconsistencies next to their signature so that Benihana can address and resolve any issues before proceeding.
This requirement ensures that Benihana is fully aware of any potential misrepresentations or unauthorized promises made during the franchise sales process. By requiring a written explanation and immediate notification of inconsistencies, Benihana aims to address any concerns and ensure that both parties enter the franchise agreement with a clear understanding of the terms and conditions. This process protects both the franchisee and Benihana from potential disputes or misunderstandings that could arise later in the franchise relationship. Prospective franchisees should take this questionnaire seriously and provide honest, complete answers to ensure a transparent and mutually beneficial partnership with Benihana.