Is Benihana responsible for delays in the construction, equipping, or decoration of the Benihana Restaurant?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
- 2.6 Both parties understand and acknowledge that the Restaurant will operate with a limited amount of equipment as compared to a standard-format full-service BENIHANA Restaurant. BNC will consult with Franchisee, to the extent BNC deems necessary, on the construction and equipping of the Restaurant, but it shall be and remain Franchisee's sole responsibility to diligently design, construct, equip, and otherwise ready and open the Restaurant. Franchisee will be responsible for obtaining all zoning classifications, permits, clearances, certificates of occupancy and center clearances, which may be required by governmental authorities.
- 2.7 Franchisee shall use licensed general contractors, designers, and architects in performing construction work at the Restaurant, and will comply with all requirements under a lease for the Restaurant.
- 2.8 BNC expressly disclaims any warranty of the quality or merchantability of any goods or services provided by architects, contractors or any other persons or entities to which it may refer Franchisee. BNC is not responsible for delays in the construction, equipping or decoration of the Restaurant or for any loss resulting from the Restaurant design or construction, because BNC has no control over the landlord or the numerous design, construction, or relate problems that could occur and delay the opening of the Restaurant.
- 2.9 BNC shall have access to the Restaurant while work is in progress and may require such reasonable alterations or modifications of the construction that BNC deems necessary.
- 2.10 Franchisee may not open the Restaurant for business without having first obtained BNC's written authorization and acknowledgement that the requirements set forth in this Article 2 have been satisfied.
- 2.11 Franchisee shall commence operation of the Restaurant within twelve (12) months from the date of this Agreement. Franchisee will be deemed to have commenced operation of the Restaurant on the date Franchisee opens to the public the Restaurant constructed, furnished, and equipped in accordance with this Agreement.
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2024 FDD)
According to Benihana's 2024 Franchise Disclosure Document, Benihana is not responsible for delays in the construction, equipping, or decoration of the restaurant. The franchisee is solely responsible for diligently designing, constructing, equipping, and readying the restaurant for opening. This includes obtaining all necessary zoning classifications, permits, clearances, and certificates of occupancy required by governmental authorities.
Benihana will consult with the franchisee on construction and equipping to the extent Benihana deems necessary. The franchisee must use licensed general contractors, designers, and architects for construction work and comply with all lease requirements. Benihana expressly disclaims any warranty regarding the quality or merchantability of goods or services provided by architects, contractors, or other entities they may refer to the franchisee.
Benihana is not responsible for delays in construction, equipping, or decoration, or for any loss resulting from restaurant design or construction. This is because Benihana has no control over the landlord or various design and construction problems that could occur and delay the restaurant's opening. Benihana does retain the right to access the restaurant during construction and may require reasonable alterations or modifications deemed necessary.
The franchisee cannot open the restaurant without Benihana's written authorization and acknowledgment that all requirements have been met. The franchisee must commence operation within 12 months from the date of the franchise agreement, with operation deemed to have commenced when the restaurant opens to the public, fully constructed, furnished, and equipped according to the agreement.