What are considered 'Special Distribution Opportunities' for Benihana restaurants, where Benihana can license others to operate?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
- 1.8 For purposes of this Agreement, "Special Distribution Opportunities" shall mean captive venue locations, generally available only in connection with third-party food service provision contracts, including, without limitation, restaurants or other retail locations at airports and other public transportation facilities, turnpikes and toll-roads, entertainment and sports complexes, hotels, casinos, convention centers, and military facilities.
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2024 FDD)
According to Benihana's 2024 Franchise Disclosure Document, "Special Distribution Opportunities" refer to specific locations where Benihana may license others to operate a Benihana restaurant. These are captive venue locations typically available through third-party food service contracts.
These locations include restaurants or retail spots within airports, public transportation facilities, turnpikes, toll roads, entertainment and sports complexes, hotels, casinos, convention centers, and military facilities. This means Benihana retains the right to establish Benihana restaurants in these non-traditional venues by licensing the Benihana System and Marks to third parties.
For a prospective franchisee, this clause clarifies that their franchise agreement does not prevent Benihana from opening or licensing other Benihana restaurants in these special venues, even if they are near the franchisee's location. This is a non-exclusive agreement, and the franchisee's rights are limited to the specific location outlined in their agreement.