What is Benihana's estimated aggregate amortization expense for intangible assets for each of the five succeeding fiscal years?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
y takes possession under the lease and include option periods where failure to exercise such options would result in an economic penalty.
Other Assets
Other assets include liquor license acquisition costs and costs to fulfill obligations under the Company's management and license agreements.
F-10
Intangible Assets
Intangible assets consist of the "Kona Grill" trade name and other finite-lived intangible assets that are amortized using the straight-line method over their estimated useful life of 10 to 20 years. As of December 31, 2021 and 2020, the gross carrying amount of the tradename intangible was $17.4 million. As of December 31, 2021 and 2020 the gross carrying amount of the other finite-lived intangible assets were $0.1 million and $0 million,
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2024 FDD)
According to Benihana's 2024 Franchise Disclosure Document, the company's intangible assets consist of the "Kona Grill" trade name and other finite-lived intangible assets. These assets are amortized using the straight-line method over their estimated useful life, which ranges from 10 to 20 years.
As of December 31, 2021, the gross carrying amount of the Kona Grill trade name intangible was $17.4 million, while the gross carrying amount of other finite-lived intangible assets was $0.1 million. The accumulated amortization of the trade name was $2.0 million as of December 31, 2021, and the amortization expense for the year ending December 31, 2021, was $0.9 million.
Benihana estimates that the aggregate amortization expense for these intangible assets for each of the five succeeding fiscal years is approximately $0.9 million annually. This means a prospective franchisee should anticipate that Benihana will continue to recognize this level of expense related to the amortization of its intangible assets over the next five years.