Under what conditions can Benihana require the franchisee to assign the restaurant lease and telephone numbers after termination or expiration of the Benihana franchise agreement?

According to Benihana's 2024 Franchise Disclosure Document, Benihana has the option to require a franchisee to assign their interest in the restaurant lease and telephone numbers upon termination or expiration of the franchise agreement. Specifically, Benihana can require the franchisee to assign any interest they have in the lease for the restaurant location and the restaurant itself to Benihana or its designee. Additionally, the franchisee must assign the telephone numbers used in connection with the restaurant's operation to Benihana or its designee by signing a Conditional Assignment of Telephone Numbers.

To ensure these assignments are properly executed, the franchisee is obligated to complete all necessary forms, obtain approvals, and perform any other actions reasonably required to effectuate these assignments. This requirement is typically included in the lease agreement as a collateral assignment of the franchisee's rights, allowing Benihana to take over the lease if the franchise agreement ends.

This provision protects Benihana's interest in maintaining control over the restaurant location and customer contact information, ensuring a smooth transition if the franchise relationship ends. For a prospective franchisee, this means understanding that upon termination or expiration of the agreement, they may be required to relinquish their rights to the restaurant lease and telephone numbers to Benihana, potentially impacting their ability to continue a similar business at the same location.