How does the Benihana's Item 11 pre-opening assistance relate to the site selection and acquisition/lease obligations in Item 9?

According to Benihana's 2024 Franchise Disclosure Document, Item 11 details the franchisor's assistance, and it directly relates to the franchisee's obligations for site selection and acquisition/lease as outlined in Item 9. Specifically, Item 9 references Articles 2, 7, 8, and 11 of the franchise agreement, indicating that site selection and acquisition/lease responsibilities are intertwined with the assistance Benihana provides.

Benihana does not select the site for the franchisee, but the location must be approved by them in advance. Benihana considers factors such as the general location, size of the property, neighborhood, population, spending habits, food and beverage sales of existing restaurants, traffic patterns, demographics, physical characteristics, and lease or purchase terms. Benihana may offer assistance in finding an approved location at the franchisee's request; however, this assistance does not constitute any assurance or warranty regarding the suitability of the location. The franchisee is responsible for buying or leasing the location at their own expense, and if leasing, they must obtain Benihana's prior written approval and provide a copy of the fully executed lease agreement.

Benihana also provides prototypical plans for a typical Benihana Restaurant. The franchisee must employ architects, designers, and engineers to adapt or modify these plans and submit them for Benihana's review and approval. Construction cannot begin until Benihana approves the final plans in writing, and the restaurant must be completed in full compliance with these approved plans. Benihana personnel will consult with the franchisee in the planning, design, construction, and build-out of the restaurant, typically at Benihana's offices, but the franchisee will bear the costs if consultations occur elsewhere. Franchisees typically open their Benihana Restaurants within 18 months after signing the Franchise Agreement, and within 12 months after the site is approved by Benihana, though this timeline can be affected by various factors such as site availability, financing, permits, and construction schedules.

In summary, while Benihana offers assistance and requires approval during the site selection and construction phases, the franchisee bears the ultimate responsibility for finding, securing, and developing the location. The pre-opening assistance described in Item 11 is designed to guide the franchisee through these obligations, ensuring compliance with Benihana's standards and requirements.