If a Benihana franchisee wishes to purchase items from a supplier not previously approved by BNC, what information must be included in the written request for approval?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
- 3.13 If Franchisee wishes to purchase any items from any supplier not previously approved by BNC, Franchisee shall submit to BNC a written request for approval of the proposed supplier.
The notice shall (a) identify the name and address of such supplier, (b) contain such information as may be requested by BNC (which may include reasonable financial, operational and economic information regarding its business), and (c) identify the authorized products desired to be purchased from such supplier.
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2024 FDD)
According to Benihana's 2024 Franchise Disclosure Document, if a franchisee wants to buy items from a supplier that Benihana has not previously approved, the franchisee must submit a written request to Benihana for approval. This request must include specific information about the supplier and the products the franchisee wishes to purchase.
The written notice to Benihana must include the supplier's name and address. Additionally, the request must contain any information that Benihana asks for, which could include financial, operational, and economic details about the supplier's business. The request must also specify the exact products the franchisee wants to buy from the supplier.
Benihana has the right to ask for samples from the potential new supplier to be sent to Benihana or an independent testing lab for examination before giving approval. The franchisee is responsible for covering the costs of these tests. Benihana can also change its supplier approval standards at any time, and these standards are considered confidential, so Benihana does not have to share them. Ultimately, Benihana is not obligated to approve any supplier and can revoke approval at any time with written notice, requiring the franchisee to immediately stop ordering from or selling the disapproved products.