If Benihana establishes procedures, limitations, and regulations regarding the operation of websites, what is a franchisee required to do?

According to Benihana's 2024 Franchise Disclosure Document, franchisees must immediately comply with any procedures, limitations, and regulations Benihana establishes regarding website operations. This means that if Benihana sets new rules or restrictions for franchisee websites, the franchisee is obligated to follow them without delay.

This requirement extends to all aspects of a franchisee's online presence, including advertising and sales through electronic mediums. Benihana maintains control over how its trademarks are used online and has the sole right to establish an Internet "home page" using any of its marks. Franchisees need prior written approval to use the marks in any electronic medium, and any approved use must adhere to Benihana's standards and specifications.

This level of control allows Benihana to maintain brand consistency and manage its online presence effectively. For a prospective franchisee, this means they will have limited autonomy over their website and online marketing strategies, as they must adhere to Benihana's directives. Failure to comply with these regulations could result in penalties or termination of the franchise agreement.