Does Benihana require franchisees to make additions, alterations, repairs, or replacements to the restaurant?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
You must keep the BENIHANA Restaurant very clean and maintain it in good repair and condition. You must make any additions, alterations, repairs and replacements, including repainting or replacement of obsolete signs, furnishings, equipment, and décor, as we may reasonably direct. You must not make any changes to the Restaurant or premises without our prior written consent. You must, at your expense, obtain and pay for any new or additional equipment, including a POS System, computer hardware and software, fixtures, supplies and other products and materials that you must have to offer and sell new menu items from the BENIHANA Restaurant or to provide services at the BENIHANA Restaurant by alternative means, such as through carryout, catering or delivery arrangements.
We may offer guidance concerning the selling price for the goods, products and services offered from your BENIHANA Restaurant, and we may set certain prices, but we make no guarantees or warranties that offering the products or merchandise at the recommended or required price will enhance your sales or profits.
Source: Item 16 — RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL (FDD pages 58–59)
What This Means (2024 FDD)
According to Benihana's 2024 Franchise Disclosure Document, franchisees are required to maintain the restaurant in good condition and repair throughout the franchise term, adhering to Benihana standards. This includes repainting walls, floors, or ceilings as needed, and repairing, refurbishing, or replacing any damaged or worn fixtures, furniture, equipment, or decorative items, including components of Benihana's trade dress. Franchisees must use only approved brands, types, and models of signs, equipment, or fixtures that meet Benihana's specifications.
Benihana also mandates that franchisees make any necessary additions, alterations, repairs, and replacements, including repainting or replacing obsolete signs, furnishings, equipment, and décor, as reasonably directed by Benihana. However, franchisees cannot make changes to the restaurant or premises without prior written consent from Benihana. Franchisees are responsible for obtaining and paying for any new or additional equipment, including a POS system, computer hardware and software, fixtures, supplies, and other materials needed to offer new menu items or services.
These stipulations ensure that all Benihana restaurants maintain a consistent brand image and quality, which is typical in franchising. The franchisee bears the financial responsibility for these maintenance and upgrade costs, which can impact profitability. It is important for prospective franchisees to factor in these ongoing expenses when evaluating the financial viability of a Benihana franchise.