Who is responsible for the expenses incurred in connection with Benihana's Ongoing Training, if it is required?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
- 5.5 Franchisee and other employees of Franchisee designated by BNC will also be required to attend continuing courses, seminars, and other training programs ("Ongoing Training") that BNC may require from time to time.
- 5.5.1 Ongoing Training may, in BNC's sole discretion, be held at either BNC's principal place of business, at the Restaurant, or at a designated BENIHANA Restaurant. Franchisee will be responsible for all expenses incurred in connection with Ongoing Training, including, without limitation, salaries or wages, transportation, lodging, and meals of Franchisee's employees.
- 5.5.2 If BNC agrees to conduct any Ongoing Training at the Location, Franchisee will 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.
- 5.6 Franchisee will provide to its employees, at Franchisee's expense, all training-related materials 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 23 — Receipts (FDD pages 74–576)
What This Means (2024 FDD)
According to Benihana's 2024 Franchise Disclosure Document, the franchisee is generally responsible for all expenses associated with Ongoing Training programs that Benihana may require from time to time. This includes the salaries or wages, transportation, lodging, and meals of the franchisee's employees attending the training. Ongoing Training may be held at Benihana's principal place of business, at the franchisee's restaurant, or at another designated Benihana restaurant.
However, there is an exception: if Benihana agrees to conduct any Ongoing Training at the franchisee's restaurant location, the franchisee will reimburse Benihana for the reasonable out-of-pocket expenses incurred by Benihana's training instructors. These expenses include travel, food, lodging, and auto rental.
Additionally, the franchisee is responsible for providing all training-related materials to its employees at the franchisee's expense. This includes materials required in any form, such as web-based training, video-conferencing, or any other training provided without face-to-face instruction. Therefore, franchisees should budget for these potential training costs when evaluating the Benihana franchise opportunity.