What information must be included in the Gross Sales Statement for a Benihana franchise?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
- 3.8 Franchisee must purchase, install, and maintain, at its expense, a point of sale data processing system and software as designated or approved from time to time by BNC (the "POS System).
The POS System must contain a device that records accumulated sales that cannot be turned back or reset, and it must include a back-up power system for memory storage in the event of power loss.
The POS System must provide a record of products sold, a menu mix report, and other reports required by BNC.
- 3.8.1 BNC has the right to retrieve all data and information directly from Franchisee's POS System as BNC deems necessary.
Franchisee is responsible for the telephonic or transmission costs of such retrieval.
- 3.8.2 Franchisee must update, upgrade, or, as necessary, install new hardware or software programs and equipment whenever BNC implements such new hardware or software requirements for franchisees.
Source: Item 23 — Receipts (FDD pages 74–576)
What This Means (2024 FDD)
Based on the 2024 Benihana Franchise Disclosure Document, the Point of Sale (POS) system that franchisees are required to purchase, install, and maintain must include certain features. Specifically, the POS system must have a device that records accumulated sales that cannot be turned back or reset. This ensures an accurate and tamper-proof record of all transactions. Additionally, the system must include a back-up power system to preserve memory storage in case of a power loss, preventing data loss.
The POS system must also provide a record of the products sold and a menu mix report. The menu mix report is a detailed breakdown of which menu items are selling well, which can help franchisees make informed decisions about inventory and promotions. Benihana also requires the POS system to generate other reports, although the specific types of these additional reports are not detailed in this excerpt.
Benihana has the right to directly access and retrieve all data and information from the franchisee's POS system as deemed necessary. The franchisee is responsible for covering the telephonic or transmission costs associated with this data retrieval. This allows Benihana to monitor sales, track trends, and ensure compliance with brand standards across all franchise locations. Franchisees are also obligated to update or install new hardware or software for the POS system whenever Benihana implements new requirements.