What are the payment obligations if the In-Restaurant Training for a Benihana franchise extends beyond 20 working days?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
In-Restaurant Training will be for a period we deem necessary to prepare for the opening of the BENIHANA Restaurant. There will be no additional fee for the In-Restaurant Training. You will be responsible, however, for all travel, living and lodging expenses for our personnel providing the In-Restaurant Training. At your request, we will, subject to our prior approval and availability, provide the assistance of additional personnel in connection with the In-Restaurant Training, provided that you reimburse us for the salaries and wages of all such additional personnel. If you request that the In-Restaurant Training be provided for more than 20 working days, you must pay all salaries, wages, and travel, living and lodging expenses of our personnel during the extending In-Restaurant Training period.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 36–47)
What This Means (2024 FDD)
According to Benihana's 2024 Franchise Disclosure Document, the franchisor will provide In-Restaurant Training to prepare for the restaurant's opening, and there is no additional fee for the training itself. However, the franchisee is responsible for covering all travel, living, and lodging expenses for Benihana personnel during this training period.
If a franchisee requests the In-Restaurant Training to be extended beyond 20 working days, they will be responsible for covering all salaries, wages, travel, living, and lodging expenses for Benihana's personnel during the extended training period. This means that the franchisee's financial obligations increase significantly if they require more than the standard training duration.
This extended training payment structure is not uncommon in the franchise industry, as it ensures that franchisees who require additional support bear the direct costs associated with it. For a prospective Benihana franchisee, this highlights the importance of adequately preparing themselves and their staff during the initial training period to minimize the need for extended, costly in-restaurant training.