Upon expiration or termination of the Benihana franchise agreement, will any monetary amount be assigned as attributable to any goodwill associated with the franchisee's use of the Marks?

According to Benihana's 2024 Franchise Disclosure Document, any goodwill that arises from a franchisee's use of Benihana's trademarks and system will accrue exclusively to the owner of the marks. Upon the expiration or termination of the franchise agreement, the franchisee will not be assigned any monetary amount attributable to the goodwill associated with their use of the Benihana marks or system. This means that the franchisee will not be compensated for any increase in brand recognition or customer loyalty they may have contributed to during the term of their franchise agreement.

This provision is standard in most franchise agreements. The franchisor retains ownership of the brand and its associated goodwill. This clause reinforces that the value created through the use of the Benihana brand name and system ultimately benefits Benihana, not the individual franchisee after the agreement ends.

For a prospective franchisee, this means that building a successful Benihana location will primarily benefit the franchisor in the long term. While the franchisee can profit during the term of the agreement, they should not expect to receive any financial benefit from the goodwill they helped create when the agreement expires or is terminated. This underscores the importance of carefully considering the terms of the franchise agreement and the potential for renewal or transfer before investing in a Benihana franchise.