If Benihana conducts any training programs at a location other than its principal place of business or another Benihana restaurant, what expenses must the franchisee reimburse to Benihana?

According to Benihana's 2024 Franchise Disclosure Document, if Benihana conducts training programs at a location other than its principal place of business or another Benihana Restaurant, the franchisee must reimburse Benihana for the reasonable out-of-pocket expenses incurred by Benihana's training instructors. These expenses include, but are not limited to, wages, travel expenses, food and lodging, and auto rental. This applies to any training programs Benihana chooses to conduct at locations other than their headquarters or existing restaurants.

This means that franchisees should be prepared to cover these costs if additional training locations are used. The franchisee is responsible for covering these costs, which can fluctuate depending on the location and duration of the training. This could potentially add a significant expense to the overall cost of training, especially if the training location is far from the franchisee's restaurant.

Furthermore, franchisees are also responsible for all expenses incurred by their own employees attending any ongoing training, including salaries, wages, transportation, lodging, and meals. However, if Benihana conducts ongoing training at the franchisee's location, the franchisee will reimburse Benihana for the reasonable out-of-pocket expenses incurred by Benihana's training instructors, including travel, food, lodging, and auto rental. This division of expenses highlights the importance of understanding the location and type of training when budgeting for franchise operations.