What were the agreement restructuring expenses for Benihana in 2020?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
nd $3.3 million in 2021 and 2020, respectively. Lease termination expenses are costs associated with closed, abandoned and disputed locations or disputed leases. In 2020, we accrued approximately $2.7 million for lease exit costs for restaurants never built and still
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2024 FDD)
According to Benihana's 2024 Franchise Disclosure Document, agreement restructuring expenses in 2020 were $0.5 million. These expenses were related to the restructuring of agreements with Benihana's management and license partners. The FDD indicates that Benihana does not anticipate incurring additional agreement restructuring expenses in the future.
For a prospective franchisee, this information provides insight into specific expenses Benihana has incurred in recent years. While agreement restructuring expenses may not be a recurring cost, understanding the types of expenses Benihana faces can help a franchisee better assess the financial stability and management practices of the company.
It's important to note that while the FDD states that Benihana does not expect to incur additional agreement restructuring expenses, unforeseen circumstances could always lead to such expenses in the future. Therefore, a franchisee should consider this information as part of a broader due diligence process, evaluating Benihana's overall financial performance and risk factors.