Who bears the expense if Benihana enters the premises to make changes to the restaurant's appearance after termination due to the franchisee's failure to do so?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
If Franchisee fails or refuses to comply with the requirements of this Section 14.1 (e), in addition to any other rights BNC has under this Agreement, BNC shall have the right to enter upon the premises where the Restaurant was operated, without being guilty of trespass or any other tort, for the purpose of making or causing to be made such changes as may be required, at Franchisee's expense, which expense Franchisee agrees to pay upon demand.
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2024 FDD)
According to Benihana's 2024 Franchise Disclosure Document, if a franchisee fails to make required modifications and alterations to the restaurant's appearance after termination, Benihana has the right to enter the premises and make those changes. The franchisee is responsible for covering these expenses.
Specifically, Benihana can enter the premises without being considered a trespasser to make the necessary changes to distinguish the location from other Benihana restaurants. These changes will be made at the franchisee's expense.
The franchisee agrees to pay these expenses upon demand from Benihana. This clause ensures that after a franchise agreement ends, the restaurant's appearance is promptly altered to avoid confusion with the Benihana brand, and the financial burden of these alterations falls on the former franchisee if they fail to comply with the required changes.