What is the estimated deferred license revenue for Benihana in 2026?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
------|--------------|-------| | | 2022 | | 2021 | | Revenue recognized from deferred license revenue | $ 79 | $ | 164 | | Revenue recognized from deferred gift card revenue | 1,295 | | 1,214 | | Revenue recognized from advanced party deposits | 248 | | 60 |
(2) Deferred gift card revenue and advance party deposits on goods and services yet to be provided are included in deferred gift card revenue and other on the consolidated balance sheets.
(3) Konavore rewards program is included in accrued expenses on the consolidated balance sheets.
As of December 31, 2022, the estimated deferred license revenue to be recognized in the future related to performance obligations that are unsatisfied as of December 31,2022 were as follows for each year ending (in thousands):
| 2023 | $ 78 |
|---|---|
| 2024 | 45 |
| 2025 | 44 |
| 2026 | 37 |
| 2027 | 34 |
| Thereafter | 59 |
| Total future estimated deferred license revenue | $ 297 |
Note 9 – Leases
The components of lease expense for the period were as follows (in thousands):
|
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2024 FDD)
According to Benihana's 2024 Franchise Disclosure Document, the estimated deferred license revenue for 2026 is $37,000. This figure represents revenue that Benihana has already received but has not yet recognized on its income statement because the services or products related to that revenue have not yet been fully delivered. In simpler terms, it's money Benihana has in hand for future obligations.
For a prospective Benihana franchisee, understanding deferred revenue can provide insight into the company's financial stability and future revenue streams. A consistent level of deferred revenue might indicate a steady stream of future business. However, significant fluctuations could signal changes in sales patterns or contractual obligations.
It is important to note that this deferred revenue relates to performance obligations that were unsatisfied as of December 31, 2022, and December 31, 2023. This means the actual revenue recognized in 2026 could differ based on new sales and obligations incurred after these dates. Franchisees should consider this information as part of a broader due diligence process, examining trends and asking Benihana for more current data to assess potential financial performance.