Who is responsible for the telephonic or transmission costs of data retrieval from a Benihana franchisee's POS system?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
- 3.20 Franchisee must comply with Payment Card Industry Data Security Standards Requirements ("PCI DSS
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2024 FDD)
Based on the 2024 Benihana Franchise Disclosure Document, it is not explicitly stated who is responsible for the telephonic or transmission costs of data retrieval from a franchisee's POS system. However, the document does state that the franchisee must comply with Payment Card Industry Data Security Standards Requirements (“PCI DSS”), and any other data-related requirements or specifications designated by BNC at all times during the Franchise Term. This implies that the franchisee is responsible for ensuring their data systems meet the required standards, which could include covering the costs of data transmission.
Furthermore, Benihana retains the right to inspect, audit, and examine all of the franchisee's books and records. If any inspection, review, or audit reveals that the franchisee understated any payments, Benihana has the right to debit the franchisee's bank account for the amount understated, plus interest. If the understatement is 3% or more, the franchisee may be required to reimburse Benihana for all costs and expenses incurred in connection with the inspection, review, or audit. This suggests that Benihana has a strong interest in ensuring the accuracy of the data transmitted from the franchisee's POS system.
Prospective franchisees should clarify with Benihana who bears the responsibility for telephonic or transmission costs related to data retrieval from the POS system. Understanding this financial obligation is crucial for budgeting and ensuring compliance with data security standards.