What is the required action regarding the Benihana Manual upon termination, transfer, or expiration of the Benihana Franchise Agreement?

According to Benihana's 2024 Franchise Disclosure Document, a franchisee is obligated to return the Benihana Manual, including all its components, to Benihana. This return must be done at the franchisee's expense immediately following the termination, transfer, or expiration of the Franchise Agreement.

This requirement ensures that Benihana maintains control over its proprietary information and operational methods. The manual contains critical details about the Benihana system, and its return prevents unauthorized use or dissemination of this information by former franchisees or other parties. This is a standard practice in franchising, as franchisors need to protect their intellectual property and maintain consistency across their franchise network.

For a prospective Benihana franchisee, this means understanding that access to the manual is contingent upon maintaining an active franchise agreement. Upon the agreement's end, the franchisee loses all rights to use the manual and must promptly return it. This obligation is a legally binding part of the franchise agreement, and failure to comply could result in legal action by Benihana.