When did Benihana exit its contract with Bagatelle?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
restaurants:
- 31.24% interest in Bagatelle NY LA Investors, LLC ("Bagatelle Investors")
- 51.13% interest in Bagatelle Little West 12th, LLC ("Bagatelle NY")
Bagatelle Investors is a holding company that has an interest in Bagatelle NY. The Company records its retained interests in Bagatelle I
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2024 FDD)
According to Benihana's 2024 Franchise Disclosure Document, Benihana exited its contract with Bagatelle upon the expiration of the lease in November 2020. The document notes that net receivables from Bagatelle entities, included in due from related parties, were $0.4 million as of both December 31, 2022, and December 31, 2021. These receivables represent Benihana's maximum exposure to loss in this matter.
This information is relevant to potential Benihana franchisees as it provides insight into Benihana's past business relationships and financial exposures. While the contract exit itself doesn't directly impact a new Benihana franchisee, the disclosure of related party transactions and potential losses offers a glimpse into the company's financial management and risk assessment practices.
It is important for prospective franchisees to understand the financial stability and business dealings of the franchisor. Reviewing such disclosures helps in evaluating the overall health and management of Benihana. While this specific contract exit may not be a cause for concern, it underscores the importance of carefully examining the FDD for any potential red flags or areas requiring further investigation.