Is it possible to get a refund on any fees paid to Benihana?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
| NAME OF FEE | AMOUNT | DUE DATE | REMARKS |
|---|---|---|---|
| Successor Franchise Agreement Fee (1) | 20% of the then current franchise fee | On signing of Successor Franchise Agreement | Non-Refundable |
NOTES:
- (1) Except as noted in the above charts, all fees are imposed by and are payable to us. All fees are non-refundable.
Source: Item 6 — OTHER FEES (FDD pages 18–21)
What This Means (2024 FDD)
According to Benihana's 2024 Franchise Disclosure Document, most fees are non-refundable. The FDD states that all fees are generally non-refundable, but it also specifies one exception.
The Successor Franchise Agreement Fee, which is 20% of the then-current franchise fee, is explicitly listed as non-refundable. This means that if a franchisee signs a Successor Franchise Agreement with Benihana, the fee paid for that agreement will not be returned under any circumstances.
Prospective franchisees should carefully consider the implications of non-refundable fees, as these represent costs that cannot be recovered, even if the franchise agreement is terminated or other unforeseen circumstances arise. It is important to factor these non-refundable fees into the overall investment analysis and financial planning before entering into a franchise agreement with Benihana.