Under what circumstances does Benihana have the right to enter the premises of a Benihana restaurant?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
(d) A provision giving BNC the right to enter the premises to make modifications necessary to protect the Marks or the BENIHANA System, or to cure any default under this Agreement.
10.1 BNC, or its authorized representatives, shall have the right to enter and inspect the Restaurant and examine and test food products and supplies for the purpose of ascertaining that Franchisee
is operating in accordance with the terms of this Agreement. Inspections will be conducted during normal business hours. BNC will notify Franchisee of any deficiencies detected during inspection, and Franchisee must promptly and diligently correct any such deficiencies. Should Franchisee, for any reason, fail to correct any deficiencies within a reasonable time as determined by BNC, BNC shall have the right and authority (without, however, any obligation to do so) to correct such deficiencies and to charge Franchisee a reasonable fee for BNC's expenses in so acting, payable by Franchisee upon demand. The foregoing right to correct deficiencies will be in addition to any other remedies that BNC may have.
- (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, Benihana has specific rights to enter and inspect a franchisee's restaurant under certain conditions. Benihana, or its authorized representatives, can enter the restaurant during normal business hours to ensure the franchisee is operating in accordance with the franchise agreement. This includes examining and testing food products and supplies.
Benihana will notify the franchisee of any deficiencies found during these inspections, and the franchisee is expected to correct them promptly. If the franchisee fails to correct these deficiencies within a reasonable time, Benihana has the right, but not the obligation, to correct the deficiencies themselves and charge the franchisee a reasonable fee for their expenses. This right is in addition to any other remedies Benihana may have under the agreement.
Additionally, if the franchise agreement is terminated or expires and the franchisee fails to make required modifications to distinguish the restaurant from other Benihana locations, Benihana has the right to enter the premises to make those changes at the franchisee's expense. This entry is permitted without Benihana being considered guilty of trespass or any other tort. These provisions ensure Benihana can maintain brand standards and protect its interests, even after a franchise relationship ends.