How long does a Benihana franchisee have to begin the design, construction, equipping, and process of opening the Restaurant from the date of this Agreement?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
- 13.2.2 Franchisee does not begin the design, construction, equipping, and process of opening the Restaurant within six (6) months of the date of this Agreement, or such later date approved by BNC in writing.
There is no cure period for an act of default under this provision.
Source: Item 23 — Receipts (FDD pages 74–576)
What This Means (2024 FDD)
According to Benihana's 2024 Franchise Disclosure Document, a franchisee must begin the design, construction, equipping, and process of opening their restaurant within six months of the franchise agreement date.
This is a critical deadline, as failure to meet it constitutes a material act of default under the agreement. If the franchisee does not start the opening process within this timeframe, Benihana has grounds to terminate the agreement.
Notably, there is no cure period for this particular default. However, the agreement allows for the possibility of a later start date if approved by Benihana in writing, providing some flexibility if unforeseen circumstances arise. This requirement ensures that franchisees are committed to a timely launch and uphold Benihana's brand standards.