Does Benihana own the real property where its 'owned' restaurants operate?

According to Benihana's 2024 Franchise Disclosure Document, Benihana does not own any real property. The document specifies that each of its 'owned' restaurants operates in premises leased by its operating subsidiary. This means that while Benihana may operate restaurants directly, it does so by leasing the property rather than owning it outright. This arrangement is typical in the franchise industry, as it reduces the capital expenditure required by the franchisor.

Furthermore, Benihana does not have a direct ownership interest in restaurants it operates under a management agreement ('managed') or license agreement ('licensed'). This clarifies that Benihana's involvement in these locations is strictly operational or through licensing, without any real estate ownership. This distinction is important for prospective franchisees to understand, as it highlights that Benihana's focus is on the brand and system rather than property ownership.

For a potential franchisee, this information indicates that they should not expect Benihana to provide real estate as part of the franchise agreement. Instead, franchisees will likely need to secure their own locations, either through leasing or purchasing property, in accordance with Benihana's standards and guidelines. Understanding this aspect is crucial for financial planning and site selection when considering a Benihana franchise.