According to Benihana's 2024 Franchise Disclosure Document, if a Guarantor dies, becomes incapacitated or insolvent, makes a general assignment for the benefit of creditors, or if proceedings under the United States Bankruptcy Code (or similar laws affecting creditors' rights) are filed or commenced by, against, or in respect of any Guarantor, all obligations of the Guarantor shall, at Benihana's option, immediately become due and payable without notice.

This means that if a Guarantor experiences financial distress or insolvency, Benihana has the right to demand immediate payment of all outstanding obligations. This clause protects Benihana by accelerating the debt repayment schedule in situations where the Guarantor's ability to meet their obligations is compromised. The "Obligations" include all of the franchisee's debts, liabilities, and obligations to Benihana arising under the Benihana Agreements, including costs of collection and attorney's fees.

For a prospective Benihana franchisee, this highlights the importance of the financial stability of any individual acting as a Guarantor. The Guarantor should fully understand the risks associated with the guaranty, as their personal assets could be at risk if the franchisee defaults or if the Guarantor themselves face financial difficulties. This clause underscores the significant financial responsibility that a Guarantor undertakes when guaranteeing a Benihana franchise agreement.