Who is responsible for the telephonic or transmission costs associated with Benihana retrieving data from the POS system?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
You must purchase, install, and maintain at your expense the ALOHA® POS System (see Item 7 Note 2). The POS System must contain a device that records accumulated sales and cannot be turned back or reset, and a back-up power system for memory storage in the event of power loss. The POS System will provide a record of products sold, a menu mix report, and other reports we require. We will have the right to retrieve the data and information directly from your POS System as we deem necessary. There are no contractual limitations on our right to access your computer information. You will be responsible for the telephonic or transmission costs of any retrieval. (Franchise Agreement, Section 3.8).
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 36–47)
What This Means (2024 FDD)
According to Benihana's 2024 Franchise Disclosure Document, the franchisee is responsible for the telephonic or transmission costs associated with Benihana retrieving data from the POS system. Benihana has the right to retrieve data and information directly from the franchisee's POS system as deemed necessary by Benihana. There are no contractual limitations on Benihana's right to access the franchisee's computer information.
This means that as a Benihana franchisee, you will incur the costs associated with the data transmission required for Benihana to access your POS system. These costs could include telephone line charges or other data transmission fees. It is important for prospective franchisees to factor these ongoing costs into their financial projections.
The POS system itself, including hardware and software, is also the franchisee's expense, with initial costs ranging from $40,000 to $65,000, and annual updates, repairs, and upgrades estimated to cost an additional $20,000 to $30,000. This allocation of responsibility is typical in many franchise systems, where franchisees bear the costs of technology and its maintenance, while the franchisor retains the right to access data for oversight and support.