Can Benihana modify the Benihana Standards during the Franchise Term?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
- 3.1 BNC will make the BENIHANA Standards available to Franchisee in the Operations Manual and in other forms of communications, all of which BNC may modify in its sole discretion at any time during the Franchise Term.
- 3.2 Franchisee acknowledges that Franchisee's adherence to the BENIHANA System, the BENIHANA Standards, and the provisions of the Operations Manual are reasonably necessary, and essential to BNC, to Franchisee and to other franchisees of BENIHANA Restaurants, in order to promote the goodwill associated with the BENIHANA System and the Marks. Notwithstanding that the parties acknowledge that many of the BENIHANA Standards will be inapplicable to the design, format, operation,
and products sold at the Restaurant, Franchisee shall comply with all applicable BENIHANA Standards and operate the Restaurant in accordance with the BENIHANA System as applicable to the Restaurant. SCHEDULES 1-A, 1-B, and 1-C to this Agreement will set forth modifications to the BENIHANA System as to menu, equipment, and training that the parties agree will apply to the operation of the Restaurant.
- 3.2.1 Franchisee further acknowledges that complete uniformity may not always be possible or practical throughout all BENIHANA Restaurants, and BNC may, from time to time, permit certain deviations from the BENIHANA System or the BENIHANA Standards as BNC deems appropriate in its sole discretion.
The parties agree and acknowledge that the service format of the Restaurant will necessarily require certain deviations from the BENIHANA System or the BENIHANA Standards as approved by BNC in its sole discretion.
- 3.3 Franchisee shall use the Location solely for the operation of the Restaurant in strict accordance with the applicable BENIHANA Standards.
The Restaurant shall be open and in operation for such minimum hours and days specified or approved by BNC in writing, which hours may be changed from time to time by BNC.
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2024 FDD)
According to Benihana's 2024 Franchise Disclosure Document, Benihana has the authority to modify the Benihana Standards at any time during the Franchise Term. Benihana will communicate these standards to the franchisee through the Operations Manual and other forms of communication.
This means that a Benihana franchisee must stay updated on any changes to the brand's standards, as Benihana has the sole discretion to modify them. These standards are crucial for maintaining the goodwill associated with the Benihana system and marks. While some standards may not apply to the restaurant's design, operation, or products, the franchisee is still expected to comply with all applicable standards.
Benihana may also permit deviations from the Benihana System or Standards as it deems appropriate. The service format of the restaurant may require certain deviations from the Benihana System or the Benihana Standards, but these deviations must be approved by Benihana.
The franchisee is obligated to operate the restaurant in strict accordance with the applicable Benihana Standards and must adhere to the minimum hours and days specified or approved by Benihana, which Benihana can change from time to time.