How does the Benihana's Item 11 pre-opening assistance relate to the site development obligations in Item 9?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
d in other items of this Disclosure 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 | |
| d. | Licenses and Permits | Article 2 & Section 3.17 | 7 | |
| e. | Initial and ongoing training | Article 5 | 11 | |
| f. | Opening | Sections 2.9 - 2.11 | 11 | |
| g. | Fees | Article 7 & Section 17.2.7 | 5 and 6 | |
| h. | Compliance with standards and policies/Operating Manual | Articles 1, 3, 9 & 10 | 11 | |
| i. | Trademarks and proprietary information | Articles 6 & 18 | 13 and 14 | |
| j. | Restrictions on products/ services offered | Articles 3 & 13 | 16 | |
| k. | Warranty and customer service requirements | Not applicable | Not applicable | |
| l. | Territorial development and sales quota | Not applicable | Not applicable | |
| m. | Ongoing product/service purchases | Article 3 | 8 | |
Obligation Section in Agreement Item in Disclosure Document n. Maintenance, appearance and remodeling requirements Articles 2 & 3 8 o. Advertising Articles 6 & 9 6, 8, 11 p. Indemnification Article 12 6 q. Management/Chef Training Article 5 11 r. Records/reports Article 8 6 s. Inspections/audits Articles 8 &10 6 t. Assignment Article 11 17 u. Renewal Article 17 17 v. Post-termination obligations Articles 14 & 18 17 w. Non-competition/ Nonsolicitation or employment covenants Article 18 17 x. Dispute resolution Article 15 17
ITEM 10. FINANCING
We do not offer direct or indirect financing. We do not guarantee your note, lease, or any other of your monetary obligations.
ITEM 11. FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING
Except as listed below, we are not required to provide you with any assistance.
Pre-Opening Obligations
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).
Post-Opening Obligations
During the operation of your BENIHANA Restaurant we will provide the following assistance and services:
What This Means (2024 FDD)
According to Benihana's 2024 Franchise Disclosure Document, Item 11 outlines the franchisor's pre-opening assistance, which includes consulting on the planning, design, construction, and build-out of the Benihana Restaurant. This assistance directly relates to the franchisee's obligations for site development as detailed in Item 9. Specifically, Item 9 lists 'Site development and other pre-opening requirements' as an obligation of the franchisee, referencing Articles 2, 3, & 5 of the franchise agreement and Items 6, 7, and 11 of the FDD.
Benihana will provide franchisees with prototypical plans for a typical restaurant, but the franchisee is responsible for employing professionals to adapt these plans and submit them for approval. Benihana will review and provide comments on the plans, and construction cannot begin until written approval is given. The franchisee must ensure the restaurant is completed in full compliance with the approved plans. Benihana also makes personnel available to consult in the planning, design, construction, and build-out of the restaurant.
This coordinated effort ensures that the franchisee meets their obligations for site development while receiving necessary guidance and approval from Benihana. The FDD also states that franchisees typically open their restaurants within 18 months after signing the Franchise Agreement, and within 12 months after site approval, though this timeline can be affected by various factors such as site location, financing, permits, and construction schedules. If a franchisee does not find an approved location, construct it in accordance with Benihana standards, and open for business within 18 months of signing the Franchise Agreement, Benihana has the right to terminate the agreement.