Is a Benihana franchisee allowed to conduct any other business activity at the Restaurant location besides the operation of the Benihana Restaurant?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
3.5 During the entire Franchise Term, Franchisee shall not carry on or conduct, or permit others to carry on or conduct, any other business activity or operation at the Restaurant or the Location other than the operation of the Restaurant permitted under this Agreement.
3.6 Franchisee shall not operate, permit or grant any concession or license to operate at the Restaurant or the Location any vending machines, video or entertainment machines, games of skill, games of chance, or other similar device, without the prior written consent of BNC in each instance.
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2024 FDD)
According to Benihana's 2024 Franchise Disclosure Document, franchisees are generally prohibited from conducting any other business activities at the restaurant location besides operating the Benihana restaurant itself. This restriction is in place for the entire duration of the franchise term.
Benihana franchisees are also restricted from operating or allowing the operation of vending machines, video or entertainment machines, games of skill or chance, or other similar devices at the restaurant location without obtaining prior written consent from Benihana. This ensures that the franchisee focuses solely on the Benihana restaurant business and maintains the brand's intended atmosphere and offerings.
This policy is typical in franchising, as franchisors want to maintain a consistent brand experience and ensure that franchisees are fully dedicated to the franchised business. Any deviation from this policy would require explicit written approval from Benihana, giving them control over any additional activities at the restaurant location.