Does Benihana require franchisees to acknowledge they have understood the attachments to the franchise agreement?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
NOW, THEREFORE, in consideration of the mutual covenants and agreements set forth in this Agreement and other valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows:
ARTICLE 1. GRANT OF FRANCHISE AND FRANCHISE TERM
- 1.1 The INTRODUCTION paragraphs set forth above are hereby incorporated in this Article 1 by reference as if set forth fully herein.
- 1.2 BNC grants to Franchisee, and Franchisee accepts, a non-exclusive franchise license to operate a single BENIHANA Restaurant (the "Restaurant") at the specific location approved by BNC and identified in the Contract Data Sheet attached as Exhibit A hereto (the "Location"), using the Marks and the BENIHANA System in accordance with the BENIHANA Standards and the terms of this Agreement. Franchisee expressly acknowledges that the franchise license granted under this Agreement is non-exclusive and that any geographic limitation on BNC's rights to use or license the Marks under this Agreement relates solely to the operation of a BENIHANA Restaurant at the Location.
Source: Item 23 — Receipts (FDD pages 74–576)
What This Means (2024 FDD)
According to Benihana's 2024 Franchise Disclosure Document, franchisees must acknowledge the receipt and sufficiency of the covenants and agreements within the franchise agreement. Specifically, the introductory paragraphs are incorporated by reference into Article 1 of the agreement.
This acknowledgment is a standard legal practice, ensuring that the franchisee is aware of and agrees to the terms outlined in the franchise agreement and its incorporated attachments. By signing the agreement, the franchisee confirms they have received and understand their rights and obligations, including those detailed in exhibits like the Contract Data Sheet (Exhibit A).
This requirement protects Benihana by confirming that franchisees cannot later claim ignorance of the agreement's contents. It also highlights the importance for potential franchisees to carefully review all attached exhibits, such as the Contract Data Sheet, as these are legally binding components of the franchise agreement.