Does Benihana make any representations about the past financial performance of franchised outlets?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
We do not make any representations about a franchisee's future financial performance or the past financial performance of company-owned or franchised outlets. We also do not authorize our employees or representatives to make any such representations either orally or in writing. If you are purchasing an existing outlet, however, we may provide you with the actual records of that outlet. If you receive any other financial performance information or projections of your future income, you should report it to the franchisor's management by contacting Alex Tabolsky, c/o 1624 Market Street, Suite 311, Denver, Colorado 80202 (email: Alex.Tabolsky@togrp.com), the Federal Trade Commission, and the appropriate state regulatory agencies.
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 66–67)
What This Means (2024 FDD)
According to Benihana's 2024 Franchise Disclosure Document, Benihana does not make any representations about a franchisee's future financial performance or the past financial performance of company-owned or franchised outlets. Benihana also does not authorize its employees or representatives to make any such representations either orally or in writing. However, if a prospective franchisee is purchasing an existing outlet, Benihana may provide the actual records of that outlet.
This means that potential franchisees will not receive any assurances from Benihana regarding the potential financial success of a franchise based on the performance of existing locations. This is a common practice in franchising, as past performance is not always indicative of future results due to various factors such as location, management skills, and local market conditions.
Benihana advises potential franchisees to report any financial performance information or projections they receive from employees or representatives to Benihana's management, the Federal Trade Commission, and appropriate state regulatory agencies. This is to protect potential franchisees from unauthorized and potentially misleading information. Prospective franchisees should conduct their own independent research and due diligence to assess the potential financial viability of a Benihana franchise.