What is the approval process for local advertising materials for a Benihana franchise, including the timeframe for approval?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
9.3 In addition to the Advertising Contributions to be paid to BNC under Section 7.3 of this Agreement, Franchisee must spend in each of Franchisee's fiscal years an amount ("Local Spend") that is not less than two percent (2%) of Gross Sales in that fiscal year for local print, radio, digital, and television and/or billboard display advertising and local marketing and promotion ("Local Advertising").
9.4 Local Advertising may consist of: television, radio, digital, magazine, or newspaper advertising; direct mail; billboard advertising; promotional brochures and literature; point-of-sale advertising materials; and other appropriate location-based marketing.
All Local Advertising must be approved in advance by BNC and must be conducted in a dignified manner and shall conform to standards and requirements as BNC may specify.
Franchisee shall not use any advertising, marketing, or promotional plans or materials unless and until Franchisee has received written approval from BNC.
If Franchisee does not receive written disapproval from BNC within fifteen (15) days after BNC receives any samples or materials, BNC will be deemed to have approved the Local Advertising material.
BNC may revoke its approval of any such plans or materials at any time effective upon written notice to Franchisee.
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2024 FDD)
According to Benihana's 2024 Franchise Disclosure Document, all local advertising materials must receive prior written approval from Benihana and must be conducted in a dignified manner, conforming to the standards and requirements specified by Benihana. Local advertising can include television, radio, digital, magazine, or newspaper advertising; direct mail; billboard advertising; promotional brochures and literature; and point-of-sale advertising materials.
To get approval, a Benihana franchisee must submit samples or materials to Benihana for review. Benihana will then review the submitted advertising materials.
If a franchisee does not receive written disapproval from Benihana within fifteen (15) days after Benihana receives the advertising samples or materials, the advertising material is considered approved. However, Benihana retains the right to revoke approval of any advertising plans or materials at any time by providing written notice to the franchisee.