Who is responsible for the travel, living, and lodging expenses of Benihana personnel during In-Restaurant Training?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
In-Restaurant Training will be for a period we deem necessary to prepare for the opening of the BENIHANA Restaurant. There will be no additional fee for the In-Restaurant Training. You will be responsible, however, for all travel, living and lodging expenses for our personnel providing the In-Restaurant Training. At your request, we will, subject to our prior approval and availability, provide the assistance of additional personnel in connection with the In-Restaurant Training, provided that you reimburse us for the salaries and wages of all such additional personnel. If you request that the In-Restaurant Training be provided for more than 20 working days, you must pay all salaries, wages, and travel, living and lodging expenses of our personnel during the extending In-Restaurant Training period.
You must pay all expenses you incur in connection with the Initial Training and In-Restaurant Training, including the costs of your employee's wages, travel, lodging, living, meals and other expenses of your employees.
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 generally responsible for covering the travel, living, and lodging expenses of Benihana personnel who provide In-Restaurant Training. This means that as a franchisee, you will need to budget for these costs in addition to the standard franchise fees and other startup expenses. This obligation applies to the initial period of In-Restaurant Training that Benihana deems necessary for the restaurant opening.
However, there are specific conditions under which these expenses are incurred. If the franchisee requests additional personnel beyond the standard training team, the franchisee must reimburse Benihana for the salaries and wages of these additional trainers. Furthermore, if the In-Restaurant Training extends beyond 20 working days, the franchisee is responsible for covering all salaries, wages, and travel-related expenses for Benihana's personnel during this extended period.
In addition to covering the expenses for Benihana's trainers, the franchisee is also responsible for all expenses incurred by their own employees during both the Initial Training and the In-Restaurant Training. These expenses include wages, travel, lodging, living costs, and meals. This comprehensive allocation of costs highlights the significant financial commitment required from the franchisee during the training phases, emphasizing the importance of careful financial planning and budgeting.