Who is responsible for the expenses related to architects, designers, and engineers needed to adapt the sample plans and specifications for a Benihana Restaurant?

According to Benihana's 2024 Franchise Disclosure Document, the franchisee is solely responsible for the expenses related to architects, designers, and engineers necessary to adapt the sample plans and specifications for the restaurant. Benihana acknowledges that the restaurant format is distinct and lacks current prototypical plans. Therefore, the franchisee must employ professionals to complete, adapt, modify, or substitute the provided sample plans and specifications. These plans must then be submitted to Benihana for review and approval before construction can begin.

This means that a prospective Benihana franchisee needs to budget for these professional services in addition to other startup costs. The franchisee bears the risk of cost overruns or unexpected expenses related to these services. It is important to note that Benihana will review the plans and specifications and provide comments or approval, but this does not shift the financial responsibility for the initial design and adaptation work.

This arrangement is fairly typical in franchising, where franchisees are generally responsible for build-out costs and adapting the franchisor's prototype to their specific location. However, the FDD highlights that Benihana Restaurants have no current prototypical plans, which could potentially increase these costs and make it more important for franchisees to engage experienced professionals. Franchisees should carefully consider these costs and risks when evaluating a Benihana franchise.