What was the amount of Benihana's noncontrolling interests at December 31, 2020?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
inancial statements. We believe that our audit provides a reasonable basis for our opinion.
/s/ Plante & Moran PLLC
We served as the Company's auditor from 2018 to 2021.
Boulder, Colorado
March 19, 2021
F-4
THE ONE GROUP HOSPITALITY, INC. CONSOLIDATED BALANCE SHEETS (in thousands, except share information)
| December 31, 2021 | December 31, 2020 | |
|---|---|---|
| ASSETS | ||
| Current assets: | ||
| Cash and cash equivalents | $ 23,614 | $ 24,385 |
| Accounts receivable | 11,356 | 5,777 |
| Inventory | 3,915 | 2,490 |
| Other current assets | 3,666 | 1,348 |
| Due from related parties | 376 | 376 |
| Total current assets | 42,927 | 34,376 |
| Property and equipment, net | 69,638 | 67,344 |
| Operating lease right-of-use assets | 85,395 | 80,960 |
| Deferred tax assets, net | 12,313 | 13,226 |
| Intangibles, net | 15,505 | 16,313 |
| Other assets | 3,199 | 2,446 |
| Security deposits | 858 | 904 |
| Total assets | $ 229,835 | $ 215,569 |
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||
| Current liabilities: | ||
| Accounts payable | $ 11,094 | $ 7,404 |
| Accrued expenses | 23,155 | 15,684 |
| Deferred license revenue | 90 | 207 |
| Deferred gift card revenue and other | 2,029 | 1,990 |
| Current portion of operating lease liabilities | 5,396 | 4,817 |
| Current portion of CARES Act Loans | — | 10,057 |
| Current portion of long-term debt | 500 | 588 |
| Total current liabilities | 42,264 | 40,747 |
| Deferred license revenue, long-term | 298 | 953 |
| Operating lease liabilities, net of current portion | 103,616 | 98,569 |
| CARES Act Loans, net of current portion | — | 8,257 |
| Long-term debt, net of current portion | 23,132 | 45,064 |
| Total liabilities | 169,310 | 193,590 |
| Commitments and contingencies (Note 15) | ||
| Stockholders' equity: | ||
| Common stock, $0.0001 par value, 75,000,000 shares authorized; 32,138,396 issued | ||
| and 32,125,762 outstanding at December 31, 2021 and 29,083,183 shares issued and | ||
| outstanding at December 31, 2020 | 3 | 3 |
| Preferred stock, $0.0001 par value, 10,000,000 shares authorized; no shares issued | ||
| and outstanding at December 31, 2021 and December 31, 2020, respectively | — | — |
| Treasury stock, 12,634 shares and 0 shares at December 31, 2021 and December 31, | ||
| 2020, respectively | (37) | — |
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2024 FDD)
According to Benihana's 2024 Franchise Disclosure Document, the noncontrolling interests as of December 31, 2020, were reported as ($1,200). This figure represents the portion of equity in Benihana's subsidiaries that is not owned by the parent company, The ONE Group Hospitality, Inc. These noncontrolling interests can arise when Benihana owns less than 100% of a subsidiary, and the outside ownership stake is reflected in this line item.
For a prospective franchisee, understanding noncontrolling interests is important because it provides insight into the financial structure and potential obligations of Benihana. While it may not directly impact the day-to-day operations of a franchise, it is a component of the overall financial health of the company. Significant changes in noncontrolling interests from year to year could signal shifts in ownership structures or subsidiary performance, which could indirectly affect the franchisor's stability and strategic direction.
It's worth noting that the figure is presented as a negative number, ($1,200), which suggests that the noncontrolling interests had a deficit or loss position at that time. This could be due to various factors, such as losses incurred by the subsidiaries in which noncontrolling interests exist. Franchisees should consider this information in the context of the broader financial statements to assess the overall risk and stability of the Benihana franchise system.