Does Benihana own any real property directly?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
Item 2. Properties
We do not own any real property. Each of our "owned" restaurants operates in premises leased by its operating subsidiary. We do not have a direct ownership interest in restaurants we operate under a management agreement ("managed") or license agreement ("licensed").
Our STK locations are as follows:
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2024 FDD)
According to Benihana's 2024 Franchise Disclosure Document, Benihana does not own any real property directly. The document specifies that each of its "owned" restaurants operates in premises leased by its operating subsidiary. Benihana does not have a direct ownership interest in restaurants it operates under a management agreement or a license agreement.
This means that if you decide to open a Benihana franchise, you will likely need to lease the property for your restaurant. This is a common arrangement in the franchise industry, as it allows the franchisor to maintain control over the brand's image and standards while reducing its capital investment.
As a prospective franchisee, it is important to consider the costs associated with leasing a property, such as rent, security deposits, and build-out expenses. You should also carefully review the lease agreement to understand your rights and obligations as a tenant. Additionally, it would be prudent to inquire with Benihana about any assistance they may offer in site selection or lease negotiation.