What is the geographic territory in which BNC is the exclusive licensee of the Benihana Marks?

According to Benihana's 2024 Franchise Disclosure Document, Benihana National Corp. (BNC) is the exclusive licensee of the Benihana Marks in the United States of America, including its territories and possessions. This means that BNC has the sole right to use, develop, and enforce the trademarks associated with the Benihana brand within this defined area.

For a prospective franchisee, this is important because it confirms that Benihana has the legal authority to grant franchises within the U.S. and its territories. It also implies that Benihana is responsible for protecting the brand's trademarks against infringement within this territory, which benefits franchisees by maintaining brand integrity.

However, the franchise agreement grants a non-exclusive license to operate a Benihana restaurant at a specific location. Benihana retains the right to operate or license others to operate competing restaurants (other than Benihana restaurants) at any location, regardless of proximity. Benihana can also sell products or services under the Benihana Marks through alternative channels of distribution anywhere, regardless of the impact on the franchisee's restaurant. This means that while BNC controls the Benihana Marks in the U.S., the franchisee's rights are limited to their specific location and do not prevent competition from other channels or brands owned or licensed by Benihana.