What specific changes can Benihana request to distinguish the appearance of the location and restaurant from other Benihana restaurants after termination?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
- (e) Franchisee shall immediately make or cause to be made such modifications and alterations to the Location and the Restaurant to distinguish the appearance of the Location and Restaurant from other BENIHANA Restaurants and shall make such specific additional changes thereto as BNC may request for that purpose.
If Franchisee fails or refuses to comply with the requirements of this Section 14.1 (e), in addition to any other rights BNC has under this Agreement, BNC shall have the right to enter upon the premises where the Restaurant was operated, without being guilty of trespass or any other tort, for the purpose of making or causing to be made such changes as may be required, at Franchisee's expense, which expense Franchisee agrees to pay upon demand.
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2024 FDD)
According to Benihana's 2024 Franchise Disclosure Document, after the termination or expiration of the franchise agreement, Benihana has the right to request specific changes to the restaurant's location and appearance to differentiate it from other Benihana restaurants.
This means that a former franchisee must comply with any specific modification requests made by Benihana to ensure the restaurant no longer resembles a Benihana outlet. These changes are intended to eliminate any confusion among customers and protect Benihana's brand identity.
If the franchisee fails to make these required changes, Benihana has the right to enter the premises and make the changes themselves at the franchisee's expense. The franchisee is then obligated to pay these expenses upon demand. This clause underscores the importance of adhering to Benihana's post-termination requirements and the potential financial consequences of non-compliance.