What maintenance obligations does a Benihana franchisee have to the Restaurant during the Franchise Term?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
o or entertainment machines, games of skill, games of chance, or other similar device, without the prior written consent of BNC in each instance.
- 3.7 Franchisee shall, at its expense, continuously throughout the Franchise Term, maintain the Restaurant in good condition and repair in accordance with the BENIHANA Standards. Such maintenance shall include, without limitation, the repainting of walls, floors, flooring, or ceilings, as needed, or the repair, refurbishment, or replacement of any damaged or worn fixtures, furniture, equipment, or decorative
items or components of BNC's trade dress.
- 3.8 Franchisee shall use in the Restaurant only those brands, types and models of signs displaying the Marks, equipment, or fixtures that are approved by BNC and meet all specifications established by BNC. Franchisee must purchase approved brands, types, and models of equipment, fixtures, and signs which meet BNC's specifications only from approved suppliers, unless otherwise agreed in writing by BNC.
- 3.9 Franchisee agrees to purchase, install, and maintain, at its expense, a point of sale data processing system and software as designated or approved from time to time by BNC (the "POS System"). The POS System shall contain a device to record accumulated sales that cannot be turned back or reset, and a back-up power system for memory storage in the event of power loss. The POS System will provide a record of products sold, a menu mix report, and other reports required by BNC. BNC shall have the right to retrieve such data and information directly from Franchisee's POS System as BNC shall deem necessary. Franchisee shall be responsible for the telephonic or transmission costs of such retrieval.
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2024 FDD)
According to Benihana's 2024 Franchise Disclosure Document, franchisees are responsible for maintaining the Restaurant in good condition and repair throughout the entire Franchise Term. This includes repainting walls, floors, or ceilings as needed, as well as repairing, refurbishing, or replacing any damaged or worn fixtures, furniture, equipment, or decorative items that are part of Benihana's trade dress.
Benihana franchisees must use only approved brands, types, and models of signs displaying the Marks, equipment, or fixtures that meet Benihana's specifications. This ensures uniformity and adherence to brand standards across all Benihana locations.
Benihana, or its representatives, have the right to inspect the Restaurant during normal business hours to ensure compliance with the franchise agreement. If deficiencies are found, Benihana will notify the franchisee, who must promptly correct them. If the franchisee fails to do so, Benihana has the right, but not the obligation, to correct the deficiencies and charge the franchisee for the expenses incurred.