If a Benihana franchisee learns of any infringement of the Benihana marks, what action must they take?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
- 6.7 If Franchisee learns of any claim or infringement of any of the Marks or any claim of unfair competition or other challenge to Franchisee's right to use any Marks, Franchisee shall immediately notify BNC.
BNC shall have the sole and exclusive right, in its sole discretion, at its own cost and expense and
for its own use and benefit, to institute suit or take such other action as it may deem proper to restrain any such infringement and defend any other such claim, and Franchisee agrees to cooperate with BNC in the prosecution of any such claim.
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2024 FDD)
According to Benihana's 2024 Franchise Disclosure Document, if a franchisee becomes aware of any infringement upon the Benihana marks, or any claims of unfair competition, the franchisee is required to immediately notify Benihana (BNC). This is a crucial obligation to protect the brand's intellectual property.
Benihana retains the sole and exclusive right to take action against any infringement, including instituting lawsuits, at its own discretion, cost, and expense. The franchisee is obligated to cooperate with Benihana in the prosecution of any such claim. This means the franchisee must provide any information or assistance that Benihana deems necessary to defend its marks.
This clause ensures that Benihana maintains control over its brand and its legal defense, preventing franchisees from taking actions that could potentially harm the brand's image or create legal complications. It also protects the franchisee from bearing the costs and risks associated with legal action, as Benihana assumes full responsibility for these aspects.