What was the cash paid for amounts included in the measurement of operating lease liabilities for Benihana for the period ending December 31, 2020, in thousands of dollars?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
ent value of the aggregate future commitment related to this lease totals $0.9 million. The Company expects this lease, which has an initial lease term of 10 years and two five-year options, to commence within the next twelve months.
F-21
Supplemental cash flow information related to leases for the period wa
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2024 FDD)
According to Benihana's 2024 Franchise Disclosure Document, the cash paid for amounts included in the measurement of operating lease liabilities for the period ending December 31, 2020, was $8,491. This figure represents the actual cash outflow Benihana made during that year related to their operating leases.
For a prospective franchisee, understanding this number is crucial because it provides insight into the company's financial obligations related to leased properties. Operating leases are typically for properties like restaurant locations, and this cash payment reflects the ongoing cost of maintaining those leases. A higher number might indicate a larger real estate footprint or more expensive lease agreements, which could impact Benihana's overall profitability and financial stability.
This information is useful for potential franchisees to assess the financial health and operational costs of Benihana. By comparing this figure with other years and analyzing the trend, franchisees can gain a better understanding of how lease obligations affect the company's cash flow and financial performance. It's also important to consider this figure in relation to Benihana's revenue and other expenses to determine the overall financial burden of lease obligations.