What is the 'Location' defined as in the Benihana franchise agreement?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
rance, and customer service that are a critical part of the BENIHANA System, and Franchisee acknowledges the necessity of operating the BENIHANA Restaurant franchised under this Agreement in conformity with the BENIHANA System, including the BENIHANA Standards.
- G. Franchisee seeks a license to use the Marks and the BENIHANA System in connection with the operation of a BENIHANA Restaurant at a single location specified in this Agreement.
NOW, THEREFORE, in consideration of the mutual covenants and agreements set forth in this Agreement and other valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows:
ARTICLE 1. GRANT OF FRANCHISE AND FRANCHISE TERM
- 1.1 The INTRODUCTION paragraphs set forth above are hereby incorporated in this Article 1 by reference as if set forth fully herein.
- 1.2 BNC grants to Franchisee, and Franchisee accepts, a non-exclusive franchise license to operate a single BENIHANA Restaurant (the "Restaurant") at the specific location approved by BNC and identified in the Contract Data Sheet attached as Exhibit A hereto (the "Location"), using the Marks and the BENIHANA System in accordance with the BENIHANA Standards and the terms of this Agreement. Franchisee expressly acknowledges that the franchise license granted under this Agreement is non-exclusive and that any geographic limitation on BNC's rights to use or license the Marks under this Agreement relates solely to the operation of a BENIHANA Restaurant at the Location.
Source: Item 23 — Receipts (FDD pages 74–576)
What This Means (2024 FDD)
According to Benihana's 2024 Franchise Disclosure Document, the 'Location' refers to the specific site approved by Benihana where the franchisee will operate their Benihana Restaurant. This location is formally identified in the Contract Data Sheet, which is included as Exhibit A to the franchise agreement.
The franchise license granted to the franchisee is explicitly limited to operating the restaurant at this specified location. This means the franchisee does not have rights to operate any other Benihana Restaurant at any other location based on this agreement. The franchisee's rights to use Benihana's trademarks and system are also restricted to this single, approved location.
Benihana requires the franchisee to use the location solely for the operation of the Benihana Restaurant. During the franchise term, the franchisee is prohibited from conducting or allowing any other business activities at the restaurant or location without explicit prior written consent from Benihana. This ensures that the franchisee focuses exclusively on the Benihana business and maintains the brand's standards.