Does the Benihana supplier approval procedure obligate Benihana to approve any particular supplier?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
If you wish to purchase, lease or use any products or other items from an unapproved supplier, you must submit a written request for approval, or must request the supplier to do so. We must approve any product or supplier in writing before you make any purchases of that product or from that supplier. Your written request must: (a) identify the name and address of the proposed supplier, (b) contain all information we request (which may include reasonable financial, operational and economic information regarding the supplier's business), and (c) identify the authorized products desired to be purchased from the supplier. We may also require that samples from the supplier be delivered to us or to a designated independent testing laboratory for testing prior to approval and use. You must pay us a fee to cover all costs of the test (see Item 6). Our supplier approval procedure does not obligate us to approve any particular supplier. However, we will notify you within 45 days after we complete the inspection and evaluation process of our approval or disapproval of any proposed supplier.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 28–33)
What This Means (2024 FDD)
According to Benihana's 2024 Franchise Disclosure Document, the supplier approval procedure does not obligate Benihana to approve any specific supplier. However, Benihana will notify a franchisee within 45 days after completing the inspection and evaluation process whether the proposed supplier is approved or disapproved.
If a Benihana franchisee wishes to purchase items from a supplier not already on the approved list, they must submit a written request for approval, or request that the supplier do so. This request must include the supplier's name and address, any information Benihana requests (including financial, operational, and economic details), and the products the franchisee wants to purchase from the supplier. Benihana may also require samples for testing, with the franchisee bearing the costs of such tests as detailed in Item 6.
Benihana maintains the right to modify its standards and expects to do so as needed. Franchisees will be notified of any changes through the manual or other methods like email. Benihana also is not required to share its criteria for product or supplier approval with franchisees or suppliers. This allows Benihana to maintain close oversight of the quality and uniformity of products used in the Benihana system, particularly those made from confidential, proprietary recipes.