If Benihana conducts Ongoing Training at a franchisee's Benihana Restaurant, what expenses must the franchisee reimburse Benihana for?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
If we decide to conduct any Ongoing Training at your BENIHANA Restaurant, you must reimburse us for the reasonable out-of-pocket expenses incurred by our training instructors in providing Ongoing Training, including but not limited to travel expenses, food and lodging, and auto rental.
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 Benihana decides to conduct Ongoing Training at a franchisee's Benihana Restaurant, the franchisee must reimburse Benihana for the reasonable out-of-pocket expenses incurred by their training instructors. These expenses include, but are not limited to, travel expenses, food and lodging, and auto rental.
This means that in addition to the costs associated with sending your own employees to training (such as salaries, wages, transportation, lodging, and meals), you will also be responsible for covering specific costs incurred by Benihana's trainers when they come to your location. This could potentially add a significant expense to the cost of training, depending on the distance traveled by the trainers, the duration of the training, and local costs for food, lodging, and car rentals.
Prospective franchisees should consider these potential costs when evaluating the overall financial investment required to operate a Benihana franchise. It would be prudent to discuss with Benihana the typical frequency and duration of Ongoing Training, as well as the estimated expenses associated with reimbursing their trainers, to better understand the potential financial impact on your business.