Under what conditions might Benihana permit deviations from the BENIHANA System or BENIHANA Standards for a franchisee?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
- 3.2 Franchisee must comply with the BENIHANA System and operate the Restaurant in accordance with the BENIHANA Standards. Franchisee acknowledges that compliance with the BENIHANA System, the BENIHANA Standards, and the provisions of the Operations Manual are reasonable requirements necessary to promote the goodwill associated with the BENIHANA System and the Marks to the mutual benefit of BNC, Franchisee, and other franchisees of BENIHANA Restaurants. Franchisee further acknowledges that complete uniformity may not always be possible or practical throughout all BENIHANA Restaurants, and BNC may, from time to time, permit certain deviations from the BENIHANA System or the BENIHANA Standards by Franchisee or other franchisees, as BNC deems appropriate in its sole discretion.
Source: Item 23 — Receipts (FDD pages 74–576)
What This Means (2024 FDD)
According to Benihana's 2024 Franchise Disclosure Document, franchisees must operate their restaurants in accordance with the BENIHANA System and BENIHANA Standards. Benihana acknowledges that complete uniformity across all restaurants may not always be possible or practical. Therefore, Benihana may, at its sole discretion, permit certain deviations from the BENIHANA System or BENIHANA Standards for individual franchisees or groups of franchisees.
This flexibility suggests that while Benihana emphasizes consistency to maintain brand identity and quality, it also recognizes the need to adapt to specific local conditions or unique circumstances that a franchisee might face. However, it's important to note that these deviations are not guaranteed and are subject to Benihana's approval.
For a prospective franchisee, this means that while they are expected to adhere to the established system, there may be room for negotiation or adaptation in certain areas. It would be prudent for potential franchisees to discuss specific situations where they foresee the need for deviation during the due diligence process to understand Benihana's willingness to accommodate such requests.