factual

What state's laws govern the Benihana franchise agreement?

Benihana Franchise · 2024 FDD

Answer from 2024 FDD Document

ADDENDUM TO BENIHANA NATIONAL CORP. FRANCHISE AGREEMENT FOR THE STATE OF WISCONSIN

This Addendum pertains to franchises sold in the State of Wisconsin and is for the purpose of complying with Wisconsin statutes and regulations. Notwithstanding anything that may be contained in the body of the Franchise Agreement to the contrary, the Agreement is amended as follows:

  1. Notwithstanding anything that may be contained in the body of the Franchise Agreement to the contrary, Article 13 of the Agreement pertaining to "Default and Termination" is amended as follows:

For all franchises sold in the State of Wisconsin, we will provide you at least 90 days' prior written notice of termination, cancellation, or substantial change in competitive circumstances. The notice will state all the reasons for termination, cancellation, or substantial change in competitive circumstances and will provide that you have 60 days in which to rectify any claimed deficiency. If the deficiency is rectified within 60 days, the notice will be void. If the reason for termination, cancellation, or substantial change in competitive circumstances is nonpayment of sums due under the franchise, you will be entitled to written notice of such default, and will have not less than 10 days in which to remedy such default from the date of delivery or posting of such notice.

    1. Ch. 135, Stats., the Wisconsin Fair Dealership Law, supersedes any provisions of this Agreement or a related document between Franchisor and Licensee inconsistent with the Law.
    1. In all other respects, the Franchise Agreement will be construed and enforced according to its terms.

Each of the undersigned hereby acknowledges having read and understood this Addendum and consents to be bound by all of its terms.

Source: Item 23 — Receipts (FDD pages 74–576)

What This Means (2024 FDD)

The 2024 Benihana Franchise Disclosure Document includes an addendum that pertains to franchises sold in the State of Wisconsin, indicating that Wisconsin statutes and regulations will apply to Benihana franchises in Wisconsin. This addendum serves to ensure compliance with Wisconsin-specific laws.

The addendum specifically amends Article 13 of the Benihana Franchise Agreement, which deals with default and termination, for franchises sold in Wisconsin. Benihana is required to provide at least 90 days' prior written notice of termination, cancellation, or substantial changes in competitive circumstances. The notice must state all reasons for such actions and allow the franchisee 60 days to rectify any claimed deficiency. If the issue is resolved within 60 days, the notice becomes void. For termination due to nonpayment, the franchisee is entitled to written notice and at least 10 days to remedy the default.

Furthermore, the Wisconsin Fair Dealership Law supersedes any conflicting provisions in the Franchise Agreement or related documents between Benihana and the franchisee. In all other respects, the Franchise Agreement will be construed and enforced according to its terms. This ensures that Wisconsin franchisees receive the protections afforded to them under state law, while the rest of the agreement remains in effect.

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.