Regarding Benihana, does BNC guarantee that any affiliated entities or parent companies guarantee BNC's performance or financially back BNC?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
EXHIBIT H TO BENIHANA NATIONAL CORP. FRANCHISE DISCLOSURE DOCUMENT
GUARANTEE OF PERFORMANCE
For value received, The ONE Group Hospitality, Inc., a Delaware corporation ("Guarantor"), located at 1624 Market Street, Suite 311, Denver, Colorado 80202, absolutely and unconditionally guarantees to assume the duties and obligations of BENIHANA NATIONAL CORP., a wholly-owned subsidiary of Guarantor, located at 1624 Market Street, Suite 311, Denver, Colorado 80202 ("Franchisor"), under Franchisor's franchise registration in each state where the franchise is registered, and under the Franchise Agreement identified in Franchisor's 2024 Franchise Disclosure Document, as it may be amended, and as that Franchise Agreement may be entered into with franchisees and amended, modified or extended from time to time. This Guarantee of Performance continues until all such obligations of the Franchisor under it franchise registrations and the Franchise Agreement are satisfied or until the liability of Franchisor to its franchisees under the Franchise Agreement has been completely discharged, whichever first occurs. Guarantor is not discharged from liability if a claim by a franchisee against Franchisor remains outstanding. Notice of acceptance is waived. Guarantor does not waive receipt of notice of default on the part of Franchisor. This Guarantee of Performance is binding on Guarantor and its successor and assigns.
Guarantor signs this Guarantee of Performance at Denver, Colorado effective as of October 1, 2024.
Guarantor: The ONE Group Hospitality, Inc.
By:
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2024 FDD)
According to Benihana's 2024 Franchise Disclosure Document, The ONE Group Hospitality, Inc., the parent company of Benihana National Corp. (BNC), provides a Guarantee of Performance. This guarantee means that The ONE Group Hospitality, Inc. absolutely and unconditionally guarantees to assume the duties and obligations of BNC under the franchise registration in each state where the franchise is registered and under the Franchise Agreement.
This guarantee remains in effect until all obligations of Benihana under its franchise registrations and the Franchise Agreement are satisfied, or until Benihana's liability to its franchisees under the Franchise Agreement has been completely discharged. The ONE Group Hospitality, Inc. will not be discharged from liability if a claim by a franchisee against Benihana remains outstanding.
This guarantee is binding on The ONE Group Hospitality, Inc. and its successors and assigns, providing a level of financial security for franchisees. The guarantor, The ONE Group Hospitality, Inc., signed this Guarantee of Performance effective as of October 1, 2024.