What monetary obligations must be satisfied before Benihana will consent to a Disposition?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
- (g) Franchisee shall execute a general release, in the form BNC requires, of any and all claims in existence against BNC and its affiliates, successors and assigns, and their respective officers, directors,
agents and employees; and
(h) Franchisee shall have satisfied all monetary obligations owed by Franchisee to BNC and its affiliates.
ARTICLE 18. TRADE SECRETS; RESTRICTIVE COVENANTS
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2024 FDD)
According to Benihana's 2024 Franchise Disclosure Document, before Benihana will consent to a disposition of the franchise, the franchisee must satisfy all monetary obligations owed to Benihana and its affiliates. This requirement ensures that Benihana receives all outstanding payments before the franchise changes ownership.
Specifically, the franchisee needs to have paid all debts, liabilities, and obligations to Benihana arising under the Benihana Agreements. These obligations encompass direct and indirect financial responsibilities, whether they are absolute, contingent, matured, or unmatured, and include any costs related to collection, compromise, and enforcement, such as reasonable attorney's fees.
In addition to settling all outstanding monetary obligations, the franchisee must also pay Benihana an assignment fee of $10,000. This fee is a standard charge associated with the transfer of the franchise to a new owner and is separate from the settlement of any outstanding debts or liabilities. These financial prerequisites are designed to protect Benihana's financial interests and ensure a smooth transition of ownership.