Under what conditions does Benihana have the right to require a franchisee to discontinue, modify, or substitute any of the Marks?

According to Benihana's 2024 Franchise Disclosure Document, Benihana has the right to require a franchisee to discontinue, modify, or substitute any of the Marks under specific circumstances. This authority is connected to potential or ongoing legal disputes concerning the franchisee's utilization of Benihana's trademarks.

Specifically, Benihana retains the discretion to mandate these changes in connection with any pending or threatened litigation involving the franchisee's use of the Marks. This provision aims to protect Benihana's brand and trademarks by allowing them to respond swiftly to legal challenges.

This clause is important for prospective franchisees as it highlights the potential for changes to branding and marketing materials during the franchise term. While it protects Benihana's interests, it also means franchisees must be prepared to adapt their restaurant's branding and signage if legal issues arise, potentially incurring costs for these modifications.