Under what circumstances is a Benihana franchisee considered to have abandoned the franchise relationship with BNC?

According to Benihana's 2024 Franchise Disclosure Document, a franchisee is considered to have abandoned the franchise relationship with BNC if they cease to do business at the Restaurant. This is explicitly defined as an abandonment of the franchise and the franchise relationship.

If a Benihana franchisee abandons the franchise, BNC will provide a notice, and the franchisee has five days to cure the default. Failure to resume business operations within this cure period would likely result in termination of the franchise agreement.

This provision protects Benihana by ensuring that franchisees maintain active operation of their restaurants, upholding the brand's presence and reputation. Abandonment could lead to loss of revenue for both the franchisee and Benihana, as well as potential damage to the brand's image in the local market. Prospective franchisees should understand this clause and ensure they have sufficient resources and commitment to maintain continuous operation of the restaurant throughout the franchise term.