Does Benihana require franchisees to acknowledge that their success will be largely dependent upon their ability as an independent businessperson?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
ARTICLE 16. INDEPENDENT CONTRACTOR
- 16.1 Franchisee acknowledges and agrees it is an independent contractor and is not an agent, partner, joint venturer, joint employer, or employee of BNC or any BNC affiliate, and no fiduciary relationship exists between the parties.
- 16.2 Franchisee will be the sole and exclusive employer of its employees, with the sole right to hire, discipline, discharge and establish wages, hours, benefits, employment policies, and other terms and conditions of employment for its employees without consultation or approval from
- BNC. BNC will have no control over the terms and conditions of employment of Franchisee's employees.
- 16.3 Franchisee will have no right to bind or obligate BNC, Benihana, Inc., or Benihana of Tokyo in any way; nor may Franchisee represent that it has any right to do so.
- 16.4 In all public records and in Franchisee's relationships with other persons, including on stationery, business forms, and checks, Franchisee will indicate independent ownership of the Restaurant and that Franchisee operates the Restaurant under a franchise license granted by BNC.
- 16.5 Franchisee must exhibit at the franchised Restaurant, in such places as may be designated by BNC, a notification that the Restaurant is operated by Franchisee as an independent contractor and not by BNC, Benihana, Inc., or Benihana of Tokyo.
Source: Item 23 — Receipts (FDD pages 74–576)
What This Means (2024 FDD)
According to Benihana's 2024 Franchise Disclosure Document, franchisees acknowledge and agree that they are independent contractors and not agents, partners, joint ventures, joint employers, or employees of Benihana or any of its affiliates. This means that franchisees are responsible for their own business decisions and operations. Benihana will not be held liable for the franchisee's business debts or actions.
Benihana franchisees have the sole right to hire, discipline, discharge, and establish wages, hours, benefits, employment policies, and other terms and conditions of employment for their employees without needing approval from Benihana. Benihana retains no control over the terms and conditions of the franchisee's employees.
Furthermore, franchisees must indicate independent ownership of the Restaurant in all public records and relationships with other persons, including on stationery, business forms, and checks. Franchisees must also exhibit a notification at the franchised Restaurant, in places designated by Benihana, stating that the Restaurant is operated by the franchisee as an independent contractor and not by Benihana.