How long after Benihana completes the inspection and evaluation process will a Benihana franchisee be notified of the approval or disapproval of a proposed supplier?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
If you wish to purchase, lease or use any products or other items from an unapproved supplier, you must submit a written request for approval, or must request the supplier to do so. We must approve any product or supplier in writing before you make any purchases of that product or from that supplier. Your written request must: (a) identify the name and address of the proposed supplier, (b) contain all information we request (which may include reasonable financial, operational and economic information regarding the supplier's business), and (c) identify the authorized products desired to be purchased from the supplier. We may also require that samples from the supplier be delivered to us or to a designated independent testing laboratory for testing prior to approval and use. You must pay us a fee to cover all costs of the test (see Item 6). Our supplier approval procedure does not obligate us to approve any particular supplier. However, we will notify you within 45 days after we complete the inspection and evaluation process of our approval or disapproval of any proposed supplier.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 28–33)
What This Means (2024 FDD)
According to Benihana's 2024 Franchise Disclosure Document, if a franchisee wishes to purchase from an unapproved supplier, they must submit a written request for approval. Benihana will then notify the franchisee of the approval or disapproval of the proposed supplier within 45 days after Benihana completes its inspection and evaluation process.
This means that Benihana franchisees are not free to choose their own suppliers and must seek approval to ensure compliance with Benihana's standards. This process allows Benihana to maintain quality control and uniformity across all franchise locations.
The franchisee bears the responsibility of initiating the approval process, either directly or by having the supplier do so. The franchisee may also be required to cover the costs associated with testing samples from the proposed supplier. While Benihana commits to a 45-day notification period after completing their evaluation, the FDD does not specify how long the inspection and evaluation process itself may take. Therefore, franchisees should factor in potential delays when seeking approval for new suppliers.