How many Bao Yum venues does Benihana operate through a licensing agreement with Reef Kitchens?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
In 2023, we opened two licensed virtual Bao Yum locations in Denver, Colorado in conjunction with REEF Kitchens. Recently the Company exited its licensing agreement with REEF Kitchens and has no venues operating pursuant to that agreement.
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2024 FDD)
According to Benihana's 2024 Franchise Disclosure Document, the company previously operated two Bao Yum venues through a licensing agreement with Reef Kitchens. These locations were in Denver, Colorado. However, Benihana has since exited its licensing agreement with Reef Kitchens. As of the FDD date, Benihana no longer operates any venues under this agreement.
For a prospective franchisee, this indicates that Benihana is actively involved in various licensing agreements and partnerships to expand its brand presence. However, these arrangements can be subject to change, as demonstrated by the termination of the Reef Kitchens agreement. This highlights the importance of understanding the terms and potential risks associated with any licensing or partnership agreements that Benihana may have in place.
It is important to note that while the FDD mentions the past licensing agreement with Reef Kitchens, it does not provide specific details about the financial performance or operational aspects of those Bao Yum venues. A potential franchisee should inquire about the reasons for terminating the agreement and the overall performance of the Bao Yum concept to assess its viability and potential for future growth.