factual

What statement about ownership must a Benihana franchisee include on business forms?

Benihana Franchise · 2024 FDD

Answer from 2024 FDD Document

Franchisee must include a written statement that the Restaurant and Franchisee's business is "independently owned and operated" in all approved uses of the Marks on business forms such as letterhead, invoices, order forms, receipts and contracts, and as BNC may otherwise designate.

Source: Item 22 — CONTRACTS (FDD pages 73–74)

What This Means (2024 FDD)

According to Benihana's 2024 Franchise Disclosure Document, franchisees must include a written statement on business forms indicating that their restaurant is independently owned and operated. This statement must be included in all approved uses of Benihana's trademarks on business forms such as letterhead, invoices, order forms, receipts, and contracts. Benihana may also designate other instances where this statement is required.

This requirement reinforces the legal distinction between Benihana as the franchisor and the franchisee as an independent business owner. It clarifies that the franchisee, not Benihana, is responsible for the restaurant's day-to-day operations and financial obligations. This is a common practice in franchising, as it helps to avoid confusion about liability and responsibility.

Prospective Benihana franchisees should be aware of this requirement and ensure that all their business forms include the necessary statement. This is essential for maintaining transparency and avoiding potential legal issues related to misrepresentation of the restaurant's ownership. Franchisees must also adhere to any additional designations made by Benihana regarding the use of this statement.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.