What is the Benihana franchisee required to do to effectuate the assignment of the lease and telephone numbers to Benihana?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
- (g) Franchisee shall: (i) at BNC's option, assign to BNC, or its designee, any interest Franchisee has in any lease for the Location and the Restaurant; and (ii) assign to BNC or its designee the telephone numbers used in connection with the operation of the Restaurant by signing a Conditional Assignment of Telephone Numbers substantially in the form attached as Exhibit C hereto.
Franchisee shall complete all forms and approvals and perform all acts reasonably necessary to effectuate such assignments.
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2024 FDD)
According to Benihana's 2024 Franchise Disclosure Document, a franchisee is required to take certain actions to assign the lease and telephone numbers to Benihana or its designee. Specifically, the franchisee must assign any interest they have in the lease for the restaurant location to Benihana or its designee, if Benihana chooses. Additionally, the franchisee must assign the telephone numbers used for the restaurant's operations to Benihana or its designee by signing a Conditional Assignment of Telephone Numbers, which is included as Exhibit C in the agreement.
To complete these assignments, the franchisee is obligated to fill out all necessary forms, obtain the required approvals, and perform all actions that are reasonably necessary to make the assignments effective. This ensures that Benihana has the option to take over the lease and control the restaurant's telephone numbers, which are critical assets for business continuity and customer communication.
This requirement is important for a prospective franchisee to understand, as it gives Benihana significant control over the restaurant location and communication channels, particularly upon termination or expiration of the franchise agreement. The franchisee should carefully review Exhibit C, the Conditional Assignment of Telephone Numbers, to fully understand the implications and obligations related to the assignment of these assets.