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Is Benihana obligated to provide ongoing training after the restaurant opens, and what personnel does this training apply to?

Benihana Franchise · 2024 FDD

Answer from 2024 FDD Document

aurant by BNC in its discretion. The In-Restaurant Training provided by BNC shall be subject to the terms set forth in Article 5 of this Agreement.

  • 4.4 BNC in its discretion will provide additional on-going training after the opening of the Restaurant, as applicable, for chefs, general managers, and other restaurant personnel, subject to BNC's availability and openings for such training.

ARTICLE 5. TRAINING

  • 5.1 The pre-opening Initial Training and In-Restaurant Training will be agreed to by the parties and set forth on SCHEDULE 1-C to this Agreement.
  • 5.2 Franchisee shall pay all expenses incurred in connection with the Initial Training and In-Restaurant Training, including, without limitation, the costs of wages, travel, lodging, living, meals, and

other expenses of Franchisee's employees.

  • 5.3 All training programs shall be at such times and places designated by BNC. Currently, the Initial Training is held at BNC's principal place of business and the In-Restaurant Training is held at another BENIHANA Restaurant. If BNC determines to conduct any training programs at any other Location, Franchisee shall reimburse BNC for the reasonable out-of-pocket expenses incurred by BNC's training instructors, including but not limited to wages, travel expenses, food and lodging, and auto rental.
  • 5.4 Franchisee and such other employees of Franchisee designated by BNC shall also be required to attend continuing courses, seminars, and other training programs ("Ongoing Training") as BNC may require from time to time.

Source: Item 22 — CONTRACTS (FDD pages 73–74)

What This Means (2024 FDD)

According to Benihana's 2024 Franchise Disclosure Document, Benihana has the discretion to provide ongoing training after the restaurant opens. This training, if provided, is applicable to chefs, general managers, and other restaurant personnel. However, this is subject to Benihana's availability and the openings for such training.

Franchisees and their designated employees are also required to attend continuing courses, seminars, and other training programs that Benihana may require from time to time. Benihana can mandate attendance at its principal place of business, the franchisee's restaurant, or another designated Benihana restaurant, as determined by Benihana.

The franchisee is responsible for all expenses related to ongoing training, including salaries, wages, transportation, lodging, and meals for their employees. If Benihana conducts the training at the franchisee's location, the franchisee must reimburse Benihana for the out-of-pocket expenses incurred by Benihana's training instructors, such as travel, food, lodging, and auto rental. Additionally, franchisees must provide all training-related materials to their employees at their own expense, including web-based training and video conferencing.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.