If a Benihana franchisee requests consultation at a location other than BNC's offices, who is responsible for covering the travel, lodging, and living expenses incurred by BNC personnel?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
- 2.3 BNC personnel will consult with Franchisee in the planning, design, construction, and build-out of the Restaurant. Unless otherwise agreed, all consultations will be at BNC's offices in Aventura, Florida (or other offices designated by BNC). If Franchisee requests, and BNC agrees, that any consultation under this Section 2.3 be held at a location other than BNC's offices, Franchisee will pay all travel, lodging, living, and other expenses incurred by BNC personnel as part of any consultation away from BNC's offices. Nothing contained in this Section 2.3 means that BNC or any of its employees are authorized to or will act as construction managers or will, in any other capacity, actually supervise the design, construction, or build-out of the Restaurant.
Source: Item 23 — Receipts (FDD pages 74–576)
What This Means (2024 FDD)
According to Benihana's 2024 Franchise Disclosure Document, if a franchisee requests consultation at a location other than Benihana's offices, the franchisee is responsible for covering the travel, lodging, living, and other expenses incurred by Benihana personnel. Benihana personnel will typically consult with the franchisee in the planning, design, construction, and build-out of the restaurant at Benihana's offices in Aventura, Florida, or other designated offices.
This means that a Benihana franchisee should factor in potential expenses for travel, lodging, and living costs for Benihana personnel if they prefer consultations to occur at a location other than Benihana's designated offices. This could significantly increase the initial investment and ongoing operational costs, depending on the frequency and location of these consultations.
It is important to note that Benihana's agreement to conduct consultations away from its offices is subject to their discretion. The FDD specifies that nothing in this section authorizes Benihana or its employees to act as construction managers or supervise the design, construction, or build-out of the restaurant. Therefore, the franchisee retains ultimate responsibility for these aspects, even with consultations.