When is the Successor Franchise Agreement Fee due for a Benihana franchise?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
| NAME OF FEE | AMOUNT | DUE DATE | REMARKS |
|---|---|---|---|
| Successor Franchise Agreement Fee (1) | 20% of the then current franchise fee | On signing of Successor Franchise Agreement | Non-Refundable |
Source: Item 6 — OTHER FEES (FDD pages 18–21)
What This Means (2024 FDD)
According to Benihana's 2024 Franchise Disclosure Document, the Successor Franchise Agreement Fee is due upon signing the Successor Franchise Agreement. This fee is non-refundable and is calculated as 20% of the then-current franchise fee.
For a prospective Benihana franchisee, this means that if they choose to renew their franchise agreement, they will need to pay a fee equivalent to 20% of the prevailing franchise fee at the time of renewal. This fee must be paid when the new agreement is signed.
It is important for franchisees to factor this cost into their financial planning when considering whether to renew their franchise agreement. Since the fee is non-refundable, franchisees should carefully evaluate their business prospects before committing to a successor agreement.