Who is responsible for acquiring or leasing the location for a Benihana restaurant?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
- 2.1 Franchisee shall construct the Restaurant in accordance with the provisions of this Agreement at the Location, and Franchisee shall not relocate the Restaurant without BNC's prior written consent.
- 2.2 Franchisee shall acquire or lease the Location at Franchisee's expense. If Franchisee leases the Location, Franchisee must obtain BNC's prior written approval before entering into a lease agreement. Franchisee shall provide BNC with a copy of Franchisee's fully executed lease agreement immediately after signing. BNC is not required and has no obligation to negotiate the terms of Franchisee's lease. BNC
may require the inclusion of certain provisions in the lease, including, but not limited to:
(a) The requirement that Franchisee and Franchisee's landlord execute and deliver to BNC a collateral assignment of Franchisee's rights under the lease in the form attached to this Agreement as Exhibit D, pursuant to which Franchisee must, at BNC's option, assign all of Franchisee's rights under the lease to BNC or its designee upon termination or expiration of this Agreement.
(b) A provision which restricts the use of the premises solely to the operation of a BENIHANA Restaurant.
(c) A provision which prohibits Franchisee from subleasing or assigning all or any part of Franchisee's occupancy rights, or extending the term of or renewing the lease, without BNC's prior written consent.
(d) A provision giving BNC the right to enter the premises to make modifications necessary to protect the Marks or the BENIHANA System, or to cure any default under this Agreement.
(e) A provision requiring the landlord to provide BNC with written notice of any defaults by Franchisee under the lease simultaneously with the issuance of any such notices to Franchisee.
2.3 BNC shall make available BNC personnel to consult with Franchisee in the planning, design, construction, and build-out of the Restaurant.
Unless otherwise agreed, all consultations will be at BNC's offices in Miami, Florida (or other offices designated by BNC).
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2024 FDD)
According to Benihana's 2024 Franchise Disclosure Document, the franchisee is responsible for acquiring or leasing the location for their Benihana restaurant. The franchisee bears the expense of acquiring or leasing the location. If leasing, Benihana requires prior written approval of the lease agreement. The franchisee must provide Benihana with a copy of the fully executed lease agreement immediately after signing. Benihana has no obligation to negotiate the lease terms.
Benihana may require specific provisions in the lease, including a collateral assignment of the franchisee's rights to Benihana upon termination or expiration of the franchise agreement. The lease must restrict the premises to only operating a Benihana Restaurant and prohibit subleasing or assigning occupancy rights without Benihana's written consent. Benihana also requires a provision allowing them to enter the premises for modifications to protect their marks or to address any franchisee default under the agreement. The lease must also require the landlord to notify Benihana of any franchisee defaults.
Benihana personnel will be available to consult with the franchisee regarding the planning, design, construction, and build-out of the restaurant, typically at Benihana's offices in Miami, Florida, unless otherwise agreed. The franchisee is responsible for constructing the Restaurant according to the franchise agreement and cannot relocate without Benihana's prior written consent.