For how long after the expiration or termination of the Benihana franchise agreement is the franchisee prohibited from employing someone who was employed by Benihana, its affiliates, or another Benihana franchisee?

According to Benihana's 2024 Franchise Disclosure Document, a franchisee is restricted from employing or attempting to employ any person who is or has been employed by Benihana, its affiliates (including HARU® or RA SUSHI® Restaurants), or any other Benihana franchisee. This restriction applies for one year prior to the expiration or termination of the franchise agreement and extends for one year after the expiration or termination.

This provision is designed to protect Benihana's interests by preventing franchisees from poaching employees who may possess valuable knowledge of the Benihana system or have established relationships with customers. It ensures that franchisees cannot unfairly benefit from the expertise and training provided by Benihana or its other franchisees. The restriction applies not only to direct employment but also to any attempts to induce such individuals to leave their current employment.

For a prospective Benihana franchisee, this means that after their franchise agreement ends, they must avoid recruiting from the Benihana network for a period of one year. This could potentially limit their access to experienced staff, particularly if they choose to open a different restaurant concept nearby. Franchisees should factor this restriction into their post-franchise plans and consider alternative staffing strategies to ensure they can operate effectively without violating the terms of the agreement.