In the event the Benihana Franchise Agreement expires or is terminated, what is the tenant obligated to do to the premises?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
Landlord and Tenant hereby acknowledge that in the event the Franchise Agreement expires or is terminated, Tenant is obligated under the Franchise Agreement to take certain steps to de-identify the Premises as a "BENIHANA" Restaurant.
Landlord agrees to cooperate fully with BNC in enforcing such provisions of the Franchise Agreement against Tenant, including allowing BNC, its employees and agents to enter and remove signs, décor and materials
bearing or displaying any marks, designs or logos of Franchisor; provided, however, that Landlord shall not be required to bear any expenses thereof. Tenant agrees that if Tenant fails to de-identify the Premises promptly upon termination or expiration as required under the Franchise Agreement, BNC may cause all required de-identification to be completed at Tenant's expense.
Source: Item 23 — Receipts (FDD pages 74–576)
What This Means (2024 FDD)
According to the 2024 Benihana Franchise Disclosure Document, if the Franchise Agreement expires or is terminated, the tenant (franchisee) is required to take steps to de-identify the premises as a Benihana restaurant. This obligation is part of the agreement between the landlord and the tenant. Benihana has the right to enforce these provisions, including entering the premises to remove signs, décor, and materials that display Benihana's marks, designs, or logos. However, the landlord is not required to bear any expenses related to this de-identification process.
The franchisee is responsible for promptly de-identifying the premises upon termination or expiration of the Franchise Agreement. If the franchisee fails to do so, Benihana has the right to complete the de-identification process at the franchisee's expense. This ensures that the Benihana brand and trademarks are protected, and that the public is not misled into believing that the location is still an authorized Benihana restaurant.
This requirement is typical in franchising to protect the brand's identity and prevent consumer confusion. Prospective Benihana franchisees should understand that upon termination or expiration of their agreement, they will need to invest time and resources to remove all traces of the Benihana brand from the premises. Failure to comply with this requirement can result in Benihana taking action and charging the franchisee for the associated costs.