Can a Benihana franchisee develop any electronic medium that displays the Marks without BNC's consent?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
Franchisee shall not develop, create, generate, own, license, lease or use, in any manner, any computer medium or electronic medium (including, without limitation, any Internet page, domain names, website, web-page, bulletin board, newsgroup or other Internet-related medium) which in any way uses or displays the Marks, or any of them, or any words, symbols or terms confusingly similar thereto, without BNC's prior written consent, and then, only in such manner and in accordance with such procedures, policies, standards and specifications as BNC may establish from time to time.
If consent is granted, BNC reserves the right to revoke such consent effective upon written notice to Franchisee.
BNC has the sole right to establish an Internet "home page" using any of the Marks, and to regulate the establishment and use of linked home pages by Franchisee and all other BENIHANA franchisees.
BNC has the right, at any time, to establish procedures, limitations, and regulations regarding the operation of any websites.
If established, Franchisee shall immediately comply with all such procedures, limitations, and regulations.
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2024 FDD)
According to Benihana's 2024 Franchise Disclosure Document, a franchisee is prohibited from developing any electronic medium that displays the Marks without prior written consent from BNC. This includes any computer or electronic medium such as internet pages, domain names, websites, web-pages, bulletin boards, newsgroups, or other Internet-related mediums. If consent is granted, Benihana reserves the right to revoke it with written notice.
Benihana retains the sole right to establish an Internet "home page" using any of the Marks and regulate the establishment and use of linked home pages by franchisees. Benihana also has the right to establish procedures, limitations, and regulations regarding the operation of any websites, with which the franchisee must immediately comply.
This policy ensures that Benihana maintains control over its brand and online presence. It prevents franchisees from creating websites or online content that could potentially dilute the brand or violate the company's standards. For a prospective franchisee, this means that all online marketing and advertising efforts must be closely aligned with Benihana's corporate strategy and adhere to their guidelines. Franchisees need to obtain written approval before launching any digital initiative that uses the Benihana Marks.