Who is responsible for covering the costs of testing samples from a proposed supplier for a Benihana franchise?

According to Benihana's 2024 Franchise Disclosure Document, if a franchisee proposes a new supplier not already approved by Benihana, the franchisee is responsible for covering the costs of testing samples from that supplier. Benihana may require these samples to be delivered either to Benihana itself or to an independent testing laboratory for analysis before granting approval for the supplier's use.

This means that as a prospective Benihana franchisee, you cannot freely choose your suppliers. If you want to use a supplier that Benihana hasn't already approved, you'll have to request permission and potentially pay for product testing to ensure they meet Benihana's standards. These standards are considered confidential and are generally not disclosed to franchisees or suppliers unless necessary.

Benihana also retains the right to revoke approval of any supplier or product at any time, and franchisees must immediately stop ordering from or selling any disapproved products. This system allows Benihana to maintain quality control and uniformity across all its franchise locations, but it also means franchisees have limited autonomy in sourcing supplies and can incur costs for testing unapproved suppliers.