Does the Benihana Statement of Prospective Franchisee ask about visual promises?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
| 6. | Has any employee or other person purporting to speak on behalf of BNC made any oral, written, visual or other promises, agreements, commitments, representations, understandings, "side deals," options, rights-of-first-refusal or other of type of commitment (collectively, the "representations"), including, but not limited to, any statements that expanded upon or were inconsistent with the FDD, the Franchise Agreement, or any other written documents, with respect to any matter including advertising, marketing, site location and development, operational, marketing, or administrative assistance, exclusive rights, exclusive or protected territory, or otherwise? |
|---|---|
| Yes | |
| No |
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2024 FDD)
According to Benihana's 2024 Franchise Disclosure Document, the Statement of Prospective Franchisee does inquire about visual promises made by anyone speaking on behalf of Benihana. Specifically, it asks whether any oral, written, visual, or other promises, agreements, commitments, representations, understandings, "side deals," options, rights-of-first-refusal or other type of commitment were made. This includes statements that expanded upon or were inconsistent with the FDD, the Franchise Agreement, or any other written documents, regarding matters like advertising, marketing, site location and development, operational, marketing, or administrative assistance, exclusive rights, or protected territory.
This question is designed to uncover any unauthorized representations made to the prospective franchisee during the sales process. Benihana aims to ensure that all information provided to potential franchisees aligns with the official documents and policies of the company. By asking about visual promises, Benihana is trying to capture any marketing materials, presentations, or other visual aids that may have conveyed information that deviates from the formal agreements.
For a prospective Benihana franchisee, this means they should carefully consider all communications they've had with Benihana representatives, including any visual presentations or materials. If any promises or representations were made that are not reflected in the FDD or Franchise Agreement, they should disclose those in their response to this question. This is crucial because Benihana relies on the franchisee's answers when deciding to enter into the franchise relationship. Failing to disclose such promises could lead to misunderstandings or disputes later on.
This type of inquiry is a standard practice in franchising, as franchisors seek to avoid liability for unauthorized representations made by their employees or representatives. It protects both the franchisor and the franchisee by ensuring that all parties are aligned on the terms and expectations of the franchise agreement. Franchisees should take this questionnaire seriously and provide honest and complete answers to ensure a transparent and mutually beneficial relationship with Benihana.