Under what circumstances might a Benihana franchisee be required to reimburse Benihana for the expenses of training instructors?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
n the experience or needs of those persons being trained.
We have the right to require you and certain of your employees to attend continuing courses, seminars, and other training programs ("Ongoing Training") as we may require from time to time. We may require you or your employees to attend additional training programs at either our principal place of business, at your BENIHANA Restaurant, or at a designated BENIHANA Restaurant, as we determine in its sole discretion. You will be responsible for all expenses incurred in connection with Ongoing Training, including, without limitation, the cost of salaries or wages, transportation, lodging and meals for our employees conducting the training. If we decide to conduct any Ongoing Training at your BENIHANA Restaurant, you must reimburse us for the reasonable out-of-pocket expenses incurred by our training instructors in providing Ongoing Training, including but not limited to travel expenses, food and lodging, and auto rental.
You cannot use the Marks to advertise or sell products or services through the mail or by any electronic or other medium, including the Internet, without our prior written
approval. You are not permitted to develop, create, generate, own, license, lease or use, in any manner, any computer medium or electronic medium (including, without limitation, any Internet page, domain names, website, web-page, bulletin board, newsgroup, or other Internet-related medium) which in any way uses or displays the Marks, or any of them, or any words, symbols, or terms confusingly similar to the Marks, without our prior written consent, and then, only in the manner and in accordance with the procedures, policies, standards, and specifications as we may establish. If consent is granted, we reserve the right to revoke the consent effective upon written notice to you.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 36–47)
What This Means (2024 FDD)
According to Benihana's 2024 Franchise Disclosure Document, a franchisee may be required to reimburse Benihana for the expenses of training instructors under specific circumstances related to both ongoing and in-restaurant training programs. For ongoing training, if Benihana decides to conduct such training at the franchisee's restaurant, the franchisee must reimburse Benihana for the reasonable out-of-pocket expenses incurred by their training instructors. These expenses include, but are not limited to, travel, food, lodging, and auto rental.
Additionally, franchisees may incur expenses related to in-restaurant training. While there is no additional fee for the initial in-restaurant training, the franchisee is responsible for covering all travel, living, and lodging expenses for Benihana personnel providing this training. If the franchisee requests additional personnel for in-restaurant training, they must reimburse Benihana for the salaries and wages of these additional personnel. Furthermore, if the in-restaurant training extends beyond 20 working days at the franchisee's request, the franchisee is responsible for paying all salaries, wages, and travel, living, and lodging expenses of Benihana's personnel during the extended period.
These reimbursement requirements highlight the importance of carefully planning and managing training programs. Franchisees should factor in these potential costs when budgeting for their initial setup and ongoing operational expenses. Understanding these obligations is crucial for maintaining a positive relationship with Benihana and ensuring the successful operation of the franchise.