What is the 'Restaurant' 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.
- 1.3 Unless sooner terminated under with the provisions of this Agreement, the franchise license granted to Franchisee will begin on the Effective Date set forth in the Contract Data Sheet and end fifteen (15) years from the date the Restaurant opens for business to the public (the
"Franchise Term"). Franchisee agrees to operate the Restaurant in accordance with this Agreement at the Location for the entire Franchise Term.
- 1.4 The grant of a franchise license under this Agreement is specifically limited to operating the Restaurant at the Location, and it does not grant, or imply the grant of, rights regarding any other BENIHANA Restaurant at any other location.
Source: Item 23 — Receipts (FDD pages 74–576)
What This Means (2024 FDD)
According to Benihana's 2024 Franchise Disclosure Document, the 'Restaurant' refers to a single Benihana Restaurant that the franchisee is licensed to operate. This restaurant must be at a specific location approved by Benihana and identified in the Contract Data Sheet. The franchisee is granted a non-exclusive franchise license to operate this restaurant using Benihana's trademarks and system, adhering to Benihana's standards and the terms outlined in the franchise agreement.
This license is explicitly limited to the operation of the Benihana Restaurant at the designated location. It does not grant any rights or imply any rights to operate other Benihana Restaurants at different locations. The franchisee acknowledges that any geographic limitations on Benihana's rights to use or license its trademarks apply solely to the operation of a Benihana Restaurant at the specified location.
The franchisee is obligated to use the location exclusively for the operation of the Benihana Restaurant and must not conduct any other business activities at the restaurant or location during the franchise term. This includes not operating or granting concessions for vending machines, video or entertainment machines, games of skill or chance, or other similar devices without Benihana's prior written consent. Benihana retains the right to enter the premises at any time to conduct inspections, protect its proprietary marks and information, and correct any deficiencies under the franchise agreement.