factual

Following termination or expiration of the Benihana Franchise Agreement, is a franchisee allowed to identify themselves as a former Benihana franchisee?

Benihana Franchise · 2024 FDD

Answer from 2024 FDD Document

  • (c) Franchisee shall not thereafter directly or indirectly identify itself in any manner as a franchisee of the BENIHANA System or former BNC licensee or franchisee.

Source: Item 22 — CONTRACTS (FDD pages 73–74)

What This Means (2024 FDD)

According to Benihana's 2024 Franchise Disclosure Document, franchisees are prohibited from identifying themselves as a former Benihana franchisee after the termination or expiration of their Franchise Agreement. Specifically, upon termination or expiration of the agreement, all rights granted to the franchisee immediately terminate, and the franchisee must cease operating the restaurant.

Furthermore, the franchisee must immediately and permanently stop using Benihana's trademarks, service marks, and trade names, including "BENIHANA", "Benihana of Tokyo", and the flower symbol. They are also barred from using any confusingly similar marks or insignia. This extends to preventing the franchisee from directly or indirectly identifying themselves as a franchisee of the Benihana system or a former licensee or franchisee.

In addition to ceasing the use of trademarks, the franchisee must also discontinue using any confidential information, the Benihana system, and any of Benihana's methods, procedures, and techniques associated with the system. This includes the trade dress, distinctive forms, slogans, signs, symbols, and devices associated with Benihana. The franchisee is required to modify the location and restaurant to distinguish its appearance from other Benihana restaurants, making specific changes as requested by Benihana. Failure to comply allows Benihana to enter the premises and make the necessary changes at the franchisee's expense. Franchisees must also cancel any assumed names or equivalent registrations containing any of Benihana's marks.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.