What is the name of the parent corporation that guarantees Benihana's obligations?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
For value received, The ONE Group Hospitality, Inc., a Delaware corporation ("Guarantor"), located at 1624 Market Street, Suite 311, Denver, Colorado 80202, absolutely and unconditionally guarantees to assume the duties and obligations of BENIHANA NATIONAL CORP., a wholly-owned subsidiary of Guarantor, located at 1624 Market Street, Suite 311, Denver, Colorado 80202 ("Franchisor"), under Franchisor's franchise registration in each state where the franchise is registered, and under the Franchise Agreement identified in Franchisor's 2024 Franchise Disclosure Document, as it may be amended, and as that Franchise Agreement may be entered into with franchisees and amended, modified or extended from time to time. This Guarantee of Performance continues until all such obligations of the Franchisor under it franchise registrations and the Franchise Agreement are satisfied or until the liability of Franchisor to its franchisees under the Franchise Agreement has been completely discharged, whichever first occurs. Guarantor is not discharged from liability if a claim by a franchisee against Franchisor remains outstanding. Notice of acceptance is waived. Guarantor does not waive receipt of notice of default on the part of Franchisor. This Guarantee of Performance is binding on Guarantor and its successor and assigns.
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 72–73)
What This Means (2024 FDD)
According to Benihana's 2024 Franchise Disclosure Document, The ONE Group Hospitality, Inc., a Delaware corporation, guarantees the obligations of Benihana National Corp. This guarantee extends to Benihana's franchise registration in each state where the franchise is registered and under the Franchise Agreement as outlined in the 2024 Franchise Disclosure Document.
The guarantee remains effective until all obligations of Benihana under its franchise registrations and the Franchise Agreement are fulfilled or until Benihana's liability to its franchisees under the Franchise Agreement is completely discharged. The ONE Group Hospitality, Inc. does not get discharged from liability if a claim by a franchisee against Benihana remains outstanding.
This arrangement provides an added layer of security for franchisees, as the parent company, The ONE Group Hospitality, Inc., assumes responsibility for Benihana's duties and obligations. This could be particularly important for prospective franchisees, as it demonstrates a commitment from a larger entity to support the franchise system and ensure its stability. The Guarantee of Performance is binding on The ONE Group Hospitality, Inc. and its successors and assigns.