If Benihana conducts Initial or In-Restaurant Training at a location other than its principal place of business or another Benihana Restaurant, what expenses must the franchisee reimburse Benihana for?

According to Benihana's 2024 Franchise Disclosure Document, if Benihana chooses to conduct Initial Training or In-Restaurant Training programs at a location other than its principal place of business or another Benihana Restaurant, the franchisee is responsible for reimbursing Benihana's reasonable out-of-pocket expenses. These expenses include, but are not limited to, wages, travel expenses, food and lodging, and auto rental for Benihana's training instructors.

This means that in addition to covering the costs for their own employees to attend training, Benihana franchisees may also have to pay for the expenses of Benihana's trainers if the training is held at a location other than the standard locations. This could potentially add a significant cost to the initial investment and ongoing operational expenses for the franchisee.

Franchisees should clarify with Benihana the potential locations for training and the circumstances under which they would be responsible for reimbursing trainer expenses. Understanding these potential costs upfront is crucial for accurate financial planning. It is also important to note that franchisees are always responsible for the expenses of their own employees related to training, regardless of the training location.