Does the Benihana franchise agreement grant the franchisee any rights to use, license, sublicense, or franchise others to use the Benihana Marks or System?

According to Benihana's 2024 Franchise Disclosure Document, the franchise agreement does not grant franchisees the right to use, license, sublicense, or franchise others to use the Benihana Marks or System. The agreement specifically grants a non-exclusive license to operate a single quick-service retail food location branded as a Benihana outlet at a specified location, using the Marks and the Benihana System in accordance with the brand's standards and the terms of the agreement.

The franchise agreement emphasizes that the grant of the franchise does not extend to any other Benihana Restaurant at any other location. It explicitly states that the franchisee has no right to use, license, sublicense, or franchise others to use the Marks or the Benihana System. Furthermore, the franchisee is not granted any options, rights of first refusal, or development opportunities beyond the single location specified in the agreement.

This restriction is a standard practice in franchising, as franchisors typically retain control over their brand and system to ensure consistency and quality across all locations. By preventing franchisees from sublicensing or franchising, Benihana maintains its ability to manage and protect its brand identity and operational standards. This also allows Benihana to strategically expand its network by selecting franchisees that align with its vision and meet its qualifications.