Does the Benihana Statement of Prospective Franchisee ask about understandings?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
| 12. | Has any employee or other person speaking on behalf of BNC made any statement, promise, or agreement, or given you any assurances concerning your ability to obtain the inventory that you may wish to purchase in connection with the operation of a BENIHANA® Restaurant? |
|---|---|
| Yes | |
| No | |
| 13. | Do you understand that the approval of BNC of a location for a BENIHANA® Restaurant |
| does not constitute an assurance, representation, or warranty of any kind as to the | |
| successful operation or profitability of a BENIHANA® Restaurant at the location? | |
| Yes | |
| No | |
| 14. | Do you understand that BNC's approval of a financing plan for operation of a |
| BENIHANA® Restaurant does not constitute any assurance that such financing plan is | |
| favorable, or not unduly burdensome, or that a BENIHANA® Restaurant will be successful | |
| if the financing plan is implemented? | |
| Yes | |
| No | |
| 15. | Do you understand that, in all dealings with you, the officers, directors, employees, and |
| agents of BNC act only in a representative capacity and not in an individual capacity and | |
| such dealings are solely between you and BNC ? | |
| Yes | |
| No | |
| 16. | Do you understand that the purchase of a franchise is a speculative investment, that |
| investment beyond that outlined in the FDD may be required to succeed, that there exists | |
| no guaranty against possible loss or failure in this or any other business, and the most | |
| important factors in the success of any franchise are your personal business, marketing, | |
| sales, and management judgment and skills? | |
| Yes | |
| No | |
| 17. | Do you understand that the success or failure of your BENIHANA® Restaurant will |
| depend in large part upon your individual skill and abilities, competition from other | |
| businesses, interest rates, inflation, labor and supply costs, location, lease terms, your | |
| management capabilities, and other economic and business factors beyond the control of | |
| BNC? | |
| Yes | |
| No |
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2024 FDD)
According to Benihana's 2024 Franchise Disclosure Document, Exhibit F is the Statement of Prospective Franchisee, which includes a series of questions designed to confirm the prospective franchisee's understanding of various aspects of the franchise agreement and the Benihana business.
Specifically, the questionnaire asks the prospective franchisee if they understand several key points. These include understanding that Benihana's approval of a location does not guarantee the restaurant's success or profitability, and that Benihana's approval of a financing plan does not assure its favorability or guarantee the restaurant's success. The questionnaire also addresses the franchisee's understanding that dealings with Benihana's representatives are solely between the franchisee and Benihana, not with the individuals in their personal capacity.
Additionally, the questionnaire emphasizes that purchasing a Benihana franchise is a speculative investment with no guarantee against loss or failure, and that success depends largely on the franchisee's skills and judgment. It also asks if the franchisee understands that the success or failure of their Benihana restaurant depends on their individual skills and abilities, competition, economic factors, and other business factors beyond Benihana's control. These questions are presented in a 'yes' or 'no' format, requiring the franchisee to acknowledge their understanding of these critical aspects of the franchise.
This Statement of Prospective Franchisee serves as a risk mitigation tool for Benihana, ensuring that franchisees are fully aware of the risks and responsibilities associated with the franchise. By confirming these understandings in writing, Benihana aims to prevent future disputes based on misunderstandings or unfulfilled expectations. Prospective franchisees should carefully consider these questions and their implications before proceeding with the franchise agreement.