Under what circumstances will a Benihana franchisee be required to reimburse Benihana for the out-of-pocket expenses of training instructors during initial training?

According to Benihana's 2024 Franchise Disclosure Document, a franchisee will be required to reimburse Benihana for the out-of-pocket expenses of training instructors during initial training if the franchisee requests that the initial training be conducted at a location other than Benihana's principal office. These reimbursable expenses include, but are not limited to, wages, travel expenses, food and lodging, and auto rental for the training instructors.

This means that while Benihana typically conducts initial training at its main office, a franchisee can request to have the training done elsewhere. However, this convenience comes at a cost, as the franchisee will then be responsible for covering the costs associated with sending Benihana's training team to that alternate location. This could potentially add a significant expense to the initial investment required to start the franchise.

It is important for prospective franchisees to consider this potential cost when deciding where they would prefer to have the initial training conducted. While having the training at a more convenient location might seem appealing, the added expenses could make it more financially prudent to attend the training at Benihana's principal office. Franchisees should discuss these options and associated costs with Benihana to make an informed decision.