If a Benihana franchisee continues to operate another business after termination, what are they prohibited from using?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
- (h) Franchisee agrees, if Franchisee continues to operate or subsequently begins to operate any other business, not to use any reproduction, counterfeit, copy or colorable imitation of the Marks or the BENIHANA trade dress, either in connection with such other business or the promotion
thereof, and Franchisee further agrees not to use any designation of origin or description or representation which falsely suggests or represents an association or connection with BNC constituting unfair competition.
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2024 FDD)
According to Benihana's 2024 Franchise Disclosure Document, if a franchisee continues to operate another business after the termination of their Benihana franchise agreement, they are prohibited from using any reproduction, counterfeit, copy, or colorable imitation of the Benihana Marks or trade dress.
This restriction extends to both the operation and promotion of the other business. The franchisee also agrees not to use any designation of origin, description, or representation that falsely suggests an association or connection with Benihana, which would constitute unfair competition.
This provision aims to protect Benihana's brand identity and prevent any potential confusion among consumers. By prohibiting the use of similar marks or trade dress, Benihana ensures that its brand remains distinct and that customers can easily differentiate between a Benihana restaurant and other establishments. This is a standard practice in franchising to maintain brand integrity and prevent unfair competition.