Who is responsible for obtaining zoning classifications, permits, clearances, certificates of occupancy, and center clearances for a 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.
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2024 FDD)
According to Benihana's 2024 Franchise Disclosure Document, the franchisee is solely responsible for obtaining all necessary zoning classifications, permits, clearances, certificates of occupancy, and center clearances required by governmental authorities for the Restaurant. Benihana will consult with the franchisee on the construction and equipping of the Restaurant to the extent Benihana deems necessary. However, it remains the franchisee's responsibility to design, construct, equip, and open the Restaurant diligently.
This means that the franchisee bears the responsibility and cost of ensuring the restaurant site complies with all local, state, and federal regulations. This includes navigating complex zoning laws, building codes, and health and safety requirements. Failing to obtain the proper permits and clearances can lead to delays in opening, fines, or even the inability to operate the restaurant.
Benihana does offer consultation during the construction and equipping phase, but the ultimate responsibility lies with the franchisee. This is a fairly standard arrangement in franchising, as the franchisee is typically the party most familiar with local regulations and conditions. However, prospective franchisees should carefully research the specific requirements in their area and factor in the time and expense of obtaining all necessary approvals.