What is the geographic limit within which a former employee of a Benihana franchisee is prohibited from engaging in a Competing Business?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
For purposes of this Agreement, a "Competing Business" shall mean a Japanese teppanyaki style or sushi restaurant or food service business.
I agree that I will not, for a period of two years following the date on which I cease to be employed by Franchisee, for myself, or through, on behalf of, or in conjunction with any person, persons, partnership, corporation or limited liability company, own maintain, engage in, be employed by, or have any interest in any Competing Business, which business is located within a five (5) mile radius of any BENIHANA Restaurant location in existence as of the date of such termination, transfer or expiration.
Source: Item 23 — Receipts (FDD pages 74–576)
What This Means (2024 FDD)
According to Benihana's 2024 Franchise Disclosure Document, a former employee of a Benihana franchisee is restricted from engaging in a Competing Business within a specific geographic radius. A Competing Business is defined as a Japanese teppanyaki style or sushi restaurant or food service business.
Specifically, a former employee is prohibited from owning, maintaining, engaging in, being employed by, or having any interest in any Competing Business. This restriction applies for a period of two years following the termination of their employment with the Benihana franchisee.
The geographic scope of this restriction is limited to a five-mile radius of any Benihana Restaurant location that existed as of the date of the employee's termination. This means that the employee cannot work for or own a competing Japanese teppanyaki or sushi restaurant within five miles of any existing Benihana restaurant for two years after leaving their job.