Can a Benihana franchisee relocate their Restaurant without prior written consent from BNC?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
- 2.1 Franchisee must construct the Restaurant in accordance with this Agreement at the Location approved by BNC under its then-existing site selection processes, and Franchisee will not relocate the Restaurant without BNC's prior written consent.
Source: Item 23 — Receipts (FDD pages 74–576)
What This Means (2024 FDD)
According to Benihana's 2024 Franchise Disclosure Document, a franchisee is not allowed to relocate their restaurant without obtaining prior written consent from Benihana (BNC). This requirement is part of the site selection and construction agreement.
This stipulation ensures that Benihana maintains control over the location of its franchises, which is crucial for brand consistency and market strategy. Requiring written consent allows Benihana to assess whether a proposed new location aligns with its overall business objectives and brand image.
For a prospective franchisee, this means that if they wish to move their Benihana restaurant to a different location, they must first seek and receive approval from Benihana. Failure to do so could result in a breach of the franchise agreement, potentially leading to termination of the franchise.