Under what circumstances can Benihana require a franchisee to discontinue or modify their use of any of the Benihana Marks?

According to Benihana's 2024 Franchise Disclosure Document, Benihana has the authority to mandate that franchisees discontinue or modify their use of any of the Benihana Marks. This can also include using additional or substitute trade names, service marks, trademarks, symbols, logos, emblems, and indicia of origin. This action can be taken if Benihana determines that such changes will benefit the Benihana system as a whole.

This provision in the franchise agreement allows Benihana to maintain brand consistency and adapt to market changes. For a franchisee, this means they may need to invest in rebranding or updating signage and marketing materials at their own expense if Benihana deems it necessary for the overall benefit of the system. It is important to note that the franchisee is responsible for these costs.

While this might seem burdensome, it is a fairly standard practice in franchising. Franchisors need the flexibility to update their branding and trademarks to stay relevant and competitive. However, franchisees should carefully consider the potential costs associated with such changes and factor them into their financial planning. It would be prudent for a prospective franchisee to discuss with existing franchisees how often Benihana has enforced this clause historically and what the typical costs have been.