Under what agreement did Benihana acquire 21 domestic BENIHANA OF TOKYO® restaurants from Benihana of Tokyo, Inc.?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
We are the successor in interest to a portion of the business formerly conducted in the continental United States by Benihana of Tokyo, Inc., a privately owned New York corporation ("BOT") that maintains its principal place of business at 445 Fifth Avenue, #30H, New York, NY 10016-0133. In May 1995, we entered into a Reorganization Agreement with BOT pursuant to which we acquired 21 domestic BENIHANA OF TOKYO® restaurants from BOT and, except as noted in the next sentence, acquired all of the rights to the BENIHANA® System, including without limitation, BOT's trademarks in the continental United States, Central and South America, excluding Mexico, and the Caribbean Islands (the "Territory"). In connection with the Reorganization Agreement, BOT was granted a license to own and operate BENIHANA Restaurants in the State of Hawaii that we terminated in February 2017.
Source: Item 1 — THE FRANCHISOR, ITS PARENTS, PREDECESSORS, AND AFFILIATES (FDD pages 8–12)
What This Means (2024 FDD)
According to Benihana's 2024 Franchise Disclosure Document, Benihana National Corp. acquired 21 domestic BENIHANA OF TOKYO® restaurants from Benihana of Tokyo, Inc. (BOT) in May 1995. This acquisition was formalized through a Reorganization Agreement between Benihana and BOT. As part of this agreement, Benihana also acquired the rights to the BENIHANA® System, including BOT's trademarks within the continental United States, Central and South America (excluding Mexico), and the Caribbean Islands, collectively known as the "Territory."
In connection with the Reorganization Agreement, BOT was granted a license to operate BENIHANA Restaurants in Hawaii. However, this license was later terminated by Benihana in February 2017. This detail highlights that the initial agreement had provisions for BOT to continue operations in a specific region, which were subsequently altered.
This historical context is important for prospective franchisees as it illustrates the evolution of the Benihana brand and its relationship with its predecessor. Understanding the terms of the Reorganization Agreement and the subsequent license termination can provide insights into the current operational structure and territorial rights of Benihana. Franchisees should be aware of these historical agreements as they may influence future business decisions and brand strategies.