After the Benihana franchise agreement terminates, what actions must the franchisee take regarding assumed names or registrations containing Benihana marks?

According to Benihana's 2024 Franchise Disclosure Document, following the termination or expiration of the franchise agreement, a franchisee must take specific actions regarding any assumed names or registrations that include Benihana's trademarks. Specifically, the franchisee is required to take all necessary steps to cancel any assumed names or equivalent registrations that contain any of Benihana's marks. This obligation is part of a broader set of requirements to ensure the franchisee ceases all association with the Benihana brand upon termination.

This requirement is in place to protect Benihana's brand identity and prevent any potential confusion among customers. By mandating the cancellation of assumed names and registrations, Benihana ensures that former franchisees cannot continue to operate under a name that suggests an ongoing affiliation with the Benihana system. This is a standard practice in franchising, as franchisors need to maintain control over their brand and prevent unauthorized use of their trademarks.

For a prospective Benihana franchisee, this means understanding that upon termination of the franchise agreement, they will need to take immediate action to remove any association with the Benihana brand from their business operations. This includes not only ceasing the use of Benihana's trademarks in the restaurant's operations but also formally canceling any business names or registrations that include those trademarks. Failure to comply with these requirements could result in legal action from Benihana to protect its brand and trademarks.