Who is responsible for the expenses incurred by Benihana personnel for consultations held outside of Benihana's offices?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
Unless otherwise agreed, all consultations will be at BNC's offices in Miami, Florida (or other offices designated by BNC).
If Franchisee requests that any consultation under this Section 2.3 be held at a location other than BNC's offices, and BNC agrees to any other requested consultation, Franchisee shall pay all travel, lodging, and living and other expenses incurred by BNC personnel as part of any consultation away from BNC's offices.
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2024 FDD)
According to Benihana's 2024 Franchise Disclosure Document, if a franchisee requests a consultation at a location other than Benihana's offices and Benihana agrees, the franchisee is responsible for covering all expenses incurred by Benihana personnel. These expenses include travel, lodging, living costs, and any other related expenses.
This means that while Benihana provides consultation services, any deviation from conducting these consultations at their designated offices in Miami, Florida, or other designated locations, will result in the franchisee bearing the financial burden of Benihana's personnel's travel and accommodation. This could potentially add a significant cost to the franchisee, especially if the consultation requires multiple trips or extended stays.
Prospective franchisees should consider this potential expense when planning their budget and deciding whether to request on-site consultations. It would be prudent to discuss the scope and estimated costs of such consultations with Benihana beforehand to avoid unexpected financial burdens. Franchisees might also explore whether remote consultation options are available to minimize these expenses.