Must the Benihana franchisee maintain the Restaurant in accordance with the Benihana Standards?

According to Benihana's 2024 Franchise Disclosure Document, the franchisee is obligated to maintain the Restaurant in good condition and repair, adhering to the Benihana Standards throughout the entire Franchise Term. This encompasses repainting walls, floors, or ceilings as necessary, and repairing, refurbishing, or replacing any damaged or worn fixtures, furniture, equipment, or decorative items that are part of Benihana's trade dress.

Benihana will provide the Benihana Standards to the franchisee in the Operations Manual and other communications, which Benihana may modify at its discretion during the Franchise Term. The franchisee must operate the Restaurant strictly according to the applicable Benihana Standards and is only allowed to use brands, types, and models of signs displaying the Marks, equipment, or fixtures that are approved by Benihana and meet its specifications.

Compliance with local, state, and federal laws is also a requirement of compliance with the Benihana Standards and the Benihana System. Benihana, or its representatives, has the right to inspect the Restaurant and examine food products and supplies to ensure the franchisee is operating according to the terms of the Franchise Agreement. The franchisee must promptly correct any deficiencies identified during these inspections. Failure to operate the Restaurant in accordance with the Benihana Standards can result in default under the agreement.