Who is responsible for covering the costs associated with the Initial Training and In-Restaurant Training for a Benihana franchise?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
- 5.2 Franchisee shall pay all expenses incurred in connection with the Initial Training and In-Restaurant Training, including, without limitation, the costs of wages, travel, lodging, living, meals, and
other expenses of Franchisee's employees.
- 5.3 All training programs shall be at such times and places designated by BNC. Currently, the Initial Training is held at BNC's principal place of business and the In-Restaurant Training is held at another BENIHANA Restaurant. If BNC determines to conduct any training programs at any other Location, Franchisee shall reimburse BNC for the reasonable out-of-pocket expenses incurred by BNC's training instructors, including but not limited to wages, travel expenses, food and lodging, and auto rental.
- 5.4 Franchisee and such other employees of Franchisee designated by BNC shall also be required to attend continuing courses, seminars, and other training programs ("Ongoing Training") as BNC may require from time to time. BNC may require Franchisee or its employees to attend additional training programs at either BNC's principal place of business, at the Restaurant, or at a designated BENIHANA Restaurant, as BNC determines in its sole discretion. Franchisee shall be responsible for any and all expenses incurred in connection with Ongoing Training, including, without limitation, salaries or wages, transportation, lodging and meals. If BNC determines to conduct any Ongoing Training at the Location, Franchisee shall reimburse BNC for the reasonable out-of-pocket expenses incurred by BNC's training instructors in providing such Ongoing Training, including but not limited to travel expenses, food and lodging, and auto rental.
- 5.5 Franchisee shall provide to its employees, at Franchisee's expense, all training-related materials that BNC may require in any other form, including web-based training, video-conferencing or any other training that may be provided without face-to-face instruction.
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 covering all expenses associated with both the Initial Training and the In-Restaurant Training programs. These expenses include, but are not limited to, the wages, travel, lodging, living expenses, and meals for the franchisee's employees attending the training. This means that franchisees must budget not only for the direct costs of training but also for all related costs to ensure their staff can participate.
Furthermore, if Benihana decides to conduct any training programs at a location other than its principal place of business or another Benihana restaurant, the franchisee is responsible for reimbursing Benihana for the reasonable out-of-pocket expenses incurred by Benihana's training instructors. These expenses include wages, travel, food, lodging, and auto rental. This condition highlights the importance of understanding where the training will be held and what additional costs may arise if the training location changes.
In addition to the initial and in-restaurant training, Benihana may require franchisees or their employees to attend ongoing training programs. The franchisee is responsible for all expenses associated with this ongoing training, including salaries or wages, transportation, lodging, and meals. If the ongoing training occurs at the franchisee's location, the franchisee must reimburse Benihana for the training instructors' out-of-pocket expenses, such as travel, food, lodging, and auto rental. The franchisee is also responsible for providing all training-related materials to its employees, including web-based training and video-conferencing, at the franchisee's expense.
This cost structure is fairly standard in the franchise industry, where franchisees typically bear the costs of training their employees. Prospective Benihana franchisees should carefully consider these training-related expenses when evaluating the overall investment required to start and operate a franchise.