If a Benihana franchisee is granted consent to use the Marks online, can that consent be revoked?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
Franchisee shall not develop, create, generate, own, license, lease or use, in any manner, any computer medium or electronic medium (including, without limitation, any Internet page, domain names, website, web-page, bulletin board, newsgroup or other Internet-related medium) which in any way uses or displays the Marks, or any of them, or any words, symbols or terms confusingly similar thereto, without BNC's prior written consent, and then, only in such manner and in accordance with such procedures, policies, standards and specifications as BNC may establish from time to time.
If consent is granted, BNC reserves the right to revoke such consent effective upon written notice to Franchisee.
BNC has the sole right to establish an Internet "home page" using any of the Marks, and to regulate the establishment and use of linked home pages by Franchisee and all other BENIHANA franchisees.
BNC has the right, at any time, to establish procedures, limitations, and regulations regarding the operation of any websites.
If established, Franchisee shall immediately comply with all such procedures, limitations, and regulations.
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2024 FDD)
According to Benihana's 2024 Franchise Disclosure Document, if a franchisee is granted consent to use the Benihana Marks online, Benihana reserves the right to revoke that consent. This revocation becomes effective upon written notice to the franchisee. This stipulation is part of the broader agreement regarding the use of Benihana's Marks.
This means that even if a Benihana franchisee receives initial approval to use the brand's trademarks online, Benihana retains the authority to withdraw this permission. The franchisee must cease the online use of the Marks once they receive written notice of the revocation. This could impact a franchisee's digital marketing strategies and online presence.
Benihana also has the sole right to establish an Internet "home page" using any of the Marks, and to regulate the establishment and use of linked home pages by Franchisee and all other BENIHANA franchisees. Benihana also has the right, at any time, to establish procedures, limitations, and regulations regarding the operation of any websites. If established, Franchisee shall immediately comply with all such procedures, limitations, and regulations. This highlights Benihana's control over its brand's online representation and ensures uniformity across all franchise locations.
Prospective franchisees should consider this clause carefully, as it gives Benihana significant control over how the brand is represented online. Franchisees need to stay informed of any changes to Benihana's policies and be prepared to adjust their online activities accordingly.