If a Benihana franchisee's General Manager leaves, what is the deadline for designating a replacement?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
If the General Manager ceases to be employed by Franchisee and available to manage the Restaurant, Franchisee must promptly, and in no event more than 120 days later, designate another person as General Manager, and that person must meet all criteria for a General Manager and be acceptable and approved by BNC.
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2024 FDD)
According to Benihana's 2024 Franchise Disclosure Document, a franchisee must designate a replacement General Manager within 120 days if the current General Manager ceases to be employed and available to manage the restaurant. The replacement General Manager must meet Benihana's educational and business criteria and be individually acceptable to Benihana.
This requirement ensures that each Benihana restaurant has a qualified and approved manager overseeing operations at all times. The 120-day window provides the franchisee with a reasonable timeframe to find a suitable candidate while preventing prolonged periods without proper management.
For a prospective franchisee, this means they need to have a plan for management succession or replacement. Failure to designate a qualified General Manager within the specified timeframe could be a breach of the franchise agreement and may lead to penalties or termination of the agreement.