factual

When using Benihana's marks on business forms, what written statement must a Benihana franchisee include?

Benihana Franchise · 2024 FDD

Answer from 2024 FDD Document

Franchisee must include a written statement that the Restaurant and Franchisee's business is "independently owned and operated" in all approved uses of the Marks on business forms such as letterhead, invoices, order forms, receipts and contracts, and as BNC may otherwise designate.

Source: Item 22 — CONTRACTS (FDD pages 73–74)

What This Means (2024 FDD)

According to Benihana's 2024 Franchise Disclosure Document, a franchisee must include a specific written statement when using Benihana's marks on business forms. This statement must declare that the restaurant and the franchisee's business are "independently owned and operated." This requirement applies to all approved uses of the marks on business forms such as letterhead, invoices, order forms, receipts, and contracts. Benihana may also designate other instances where this statement is necessary.

This requirement ensures clarity for customers and the public, indicating that while the business operates under the Benihana brand, it is independently owned and managed. This distinction is common in franchising, as it clarifies the relationship between the franchisor and franchisee, highlighting the franchisee's role as an independent business owner.

Failure to include this statement on the specified business forms could result in a breach of the franchise agreement. Therefore, prospective Benihana franchisees should ensure they fully understand and comply with this requirement to maintain good standing with the franchisor and avoid potential penalties.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.