Is a Benihana franchisee required to include a written statement about independent ownership on business forms?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
rate or other legal name, or as part of any e-mail address, domain name, or other identification of Franchisee or Franchisee's business, in any medium. Franchisee must include a written statement that the Restaurant and Franchisee's business is "independently owned and operated" in all approved uses of the Marks on business forms such as letterhead, invoices, order forms, receipts and contracts, and as BNC may otherwise designate.
- 6.5 Franchisee may not use the Marks to advertise or sell products or services through the mail or by any electronic or other medium, including the Internet, without BNC's prior written approval.
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2024 FDD)
According to Benihana's 2024 Franchise Disclosure Document, franchisees are required to include a written statement indicating independent ownership on certain business documents. Specifically, Benihana requires franchisees to state that their restaurant and business are "independently owned and operated" in all approved uses of Benihana's trademarks on business forms. These forms include letterhead, invoices, order forms, receipts, and contracts. Benihana may also designate other instances where this statement is necessary.
This requirement ensures that customers and other parties interacting with the Benihana franchise understand that the franchisee is an independent entity and not directly operated by Benihana itself. This distinction is important for legal and liability reasons, as well as for managing customer expectations. The franchisee is responsible for the day-to-day operations and management of their specific location.
Additionally, Benihana mandates that franchisees indicate independent ownership of the restaurant on stationery, business forms, and checks in all public records and relationships with other persons. Franchisees must also exhibit a notification at the restaurant, in places designated by Benihana, stating that the restaurant operates as an independent contractor and not directly by Benihana, Inc. or Benihana of Tokyo. These measures reinforce the independent contractor status of the franchisee and prevent any misrepresentation of the relationship between the franchisee and Benihana.