Does Benihana believe that the resolution of lawsuits, proceedings, or claims will have a material adverse effect on the company's consolidated financial position or results of operations?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
d below (in thousands).
| For the year ended December 31, | ||||
|---|---|---|---|---|
| 2020 | ||||
| $ | 272,651 4,527 | $ | 140,537 1,406 | |
| $ | 277,178 2021 | $ | 141,943 December 31, 2020 | |
| $ | 185,718 1,190 | $ | 180,935 258 | |
| $ | 186,908 | $ 2021 December 31, | 181,193 |
Note 15 – Commitments and Contingencies
The Company is party to claims in lawsuits incidental to its business, including lease disputes and employee-related matters. The Company has recorded accruals in its consolidated financial statements in accordance with ASC 450. While the resolution of a lawsuit, proceeding or claim may have an impact on the Company's financial results for the period in which it is resolved, in the opinion of management, the ultimate outcome of such matters and judgements in which the Company is currently involved, either individually or in the aggregate, will not have a material adverse effect on the Company's consolidated financial position or results of operations.
UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D. C. 20549 FORM 10-K
(Mark One)
☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2022
or
☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
Commission File Number 001-37379
The ONE Group Hospitality, Inc.
(Exact name of registrant as specified in its charter)
14-1961545 (I.R.S.
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2024 FDD)
According to Benihana's 2024 Franchise Disclosure Document, Benihana is party to claims and lawsuits incidental to its business, including lease disputes and employee-related matters. Benihana has recorded accruals in its consolidated financial statements in accordance with ASC 450, Contingencies. While the resolution of a lawsuit, proceeding, or claim may impact Benihana's financial results for the period in which it is resolved, Benihana's management believes that the ultimate outcome of such matters and judgments in which Benihana is currently involved will not have a material adverse effect on the company's consolidated financial position or results of operations.
Benihana is also subject to claims common to its industry and in the ordinary course of its business. Companies in the industry, including Benihana, have been and are subject to class action lawsuits, primarily regarding compliance with labor laws and regulations. Defending lawsuits requires significant management attention and financial resources, and the outcome of any litigation is inherently uncertain. Benihana believes that accruals for these matters are adequately provided for in its consolidated financial statements.
Benihana may have to make payments from time to time to settle or resolve legal matters. Benihana does not believe the ultimate resolutions of these matters will have a material adverse effect on its consolidated financial position and results of operations. However, the resolution of lawsuits is difficult to predict. A significant increase in the number of these claims, or one or more successful claims under which Benihana incurs greater liabilities than is currently anticipated, could materially and adversely affect its consolidated financial statements.