How does the Benihana's Item 11 pre-opening assistance relate to the pre-opening purchases/leases obligations in Item 9?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
| a. | Site selection and acquisition/lease | Article 2 | 7, 8 and 11 |
|---|---|---|---|
| b. | Pre-opening purchases/leases | Articles 2 & 3 | 7 and 8 |
| c. | Site development and other pre-opening requirements | Articles 2, 3 & 5 | 6, 7 and 11 |
| e. | Initial and ongoing training | Article 5 | 11 |
Before you open the BENIHANA Restaurant, we will:
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- provide you with access to the Manual for use during the franchise term. (Franchise Agreement, Section 4.1);
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- provide to you our then-current initial training program ("Initial Training"). (Franchise Agreement, Section 4.2, Article 5);
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- provide pre-opening and opening assistance and training of additional employees of yours (other than those trained at the Initial Training) at the BENIHANA Restaurant ("In-Restaurant Training") as we deem appropriate. (Franchise Agreement, Sections 4.3, 5.3); and
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- make our personnel available to you to consult in the planning, design, construction, and build-out of the BENIHANA Restaurant. (Franchise Agreement, Sections 2.3, 2.4).
You agree to purchase and install, at your expense, a point-of-sale data processing system (the "POS System"), including the software specified in the Manual (as defined in Item 8 of this Disclosure Document) provided by us or otherwise specified in writing. Presently, the required POS System is an ALOHA® system. See Item 11 for initial and ongoing costs of the POS System.
What This Means (2024 FDD)
According to Benihana's 2024 Franchise Disclosure Document, Item 11 outlines the franchisor's assistance, advertising, computer systems, and training provided to franchisees. This relates to the franchisee's obligations for pre-opening purchases and leases, as detailed in Item 9, specifically concerning site selection, acquisition/lease, pre-opening purchases/leases, and site development. Benihana provides consultation in the planning, design, construction, and build-out of the restaurant, which directly impacts the franchisee's obligations to secure and develop a suitable site.
Item 11 states that Benihana will provide access to their manual, initial training, pre-opening assistance, and consultation in the restaurant's planning and design. This support helps franchisees fulfill their obligations related to site selection, pre-opening purchases, and site development, as listed in Item 9. The initial and in-restaurant training programs detailed in Item 11 ensure that the franchisee and their staff are adequately prepared to operate the restaurant according to Benihana's standards, which is crucial for meeting the pre-opening requirements outlined in Item 9.
Furthermore, Item 9 references specific articles and sections within the franchise agreement that govern these obligations. For instance, site selection and acquisition/lease are tied to Article 2, while pre-opening purchases/leases are linked to Articles 2 & 3. These articles likely contain detailed requirements and standards that Benihana's pre-opening assistance is designed to help the franchisee meet. The POS system, which franchisees must purchase and install, is mentioned in Item 11 and is a pre-opening purchase covered in Item 9.
In summary, the pre-opening assistance offered by Benihana in Item 11 is directly connected to the franchisee's responsibilities for pre-opening purchases and leases as described in Item 9. Benihana's support in areas like site selection, training, and restaurant design is intended to guide franchisees in fulfilling their obligations and meeting the brand's standards before opening their restaurant.