What actions must a Benihana franchisee take regarding trade name or fictitious name registrations as instructed by the franchisor?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
You may not use the Marks as part of your corporate or other legal name, and you must comply with our instructions in filing and maintaining trade name or fictitious name registrations. You must sign any documents we require to protect the Marks or to maintain their continued validity and enforceability. You may not directly or indirectly contest the validity of our ownership of or our rights in and to the Marks.
Source: Item 13 — TRADEMARKS (FDD pages 49–55)
What This Means (2024 FDD)
According to Benihana's 2024 Franchise Disclosure Document, a franchisee must adhere to specific instructions from Benihana regarding trade name or fictitious name registrations. Benihana restricts franchisees from using the brand's trademarks as part of their corporate or legal name.
Specifically, franchisees are obligated to comply with Benihana's directives in both filing and maintaining any required trade name or fictitious name registrations. Furthermore, franchisees must sign any documents that Benihana deems necessary to protect the trademarks or to ensure their continued legal validity and enforceability. This requirement ensures that Benihana maintains control over its brand identity and can take necessary legal steps to protect its trademarks.
These stipulations are fairly standard in franchising, as franchisors need to protect their brand identity and trademarks. Franchisees also agree not to contest the validity of Benihana's ownership or rights to the trademarks, reinforcing Benihana's control over its intellectual property and preventing potential legal challenges from franchisees. This is a common clause that protects the franchisor's brand and reputation.