If a Benihana franchisee fails to make required modifications to the location after termination, what right does Benihana have?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
If Franchisee fails or refuses to comply with the requirements of this Section 14.1 (e), in addition to any other rights BNC has under this Agreement, BNC shall have the right to enter upon the premises where the Restaurant was operated, without being guilty of trespass or any other tort, for the purpose of making or causing to be made such changes as may be required, at Franchisee's expense, which expense Franchisee agrees to pay upon demand.
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2024 FDD)
According to Benihana's 2024 Franchise Disclosure Document, if a franchisee fails to make the required modifications and alterations to the restaurant location after the termination or expiration of the franchise agreement, Benihana has the right to enter the premises. Benihana can then make or cause to be made the necessary changes to distinguish the appearance of the location from other Benihana restaurants.
This right allows Benihana to protect its brand identity and ensure that former franchise locations do not continue to represent or resemble the Benihana brand after the franchise agreement has ended. This is a fairly standard clause in franchise agreements, as franchisors need to maintain consistent brand standards and avoid customer confusion.
The franchisee is responsible for covering the expenses incurred by Benihana in making these modifications. Benihana will demand payment from the franchisee for these expenses. This provision ensures that the financial burden of altering the location falls on the former franchisee, who failed to meet their contractual obligations, rather than on Benihana itself or its other franchisees.