What expenses are included in 'General and administrative' expenses for Benihana?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
General and administrative. General and administrative expenses are comprised of all corporate overhead expenses, including payroll and related benefits, stock-based compensation expense, professional fees, such as legal and accounting fees, insurance and travel expenses. Certain centrally managed general and administrative expenses are allocated specifically to restaurant locations and are reflected in owned restaurant operating expenses and include shared services such as reservations, events and marketing. We expect general and administrative expenses to be leveraged as we grow, become more efficient, and continue to focus on best practices and cost savings measures.
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2024 FDD)
According to Benihana's 2024 Franchise Disclosure Document, general and administrative expenses encompass all corporate overhead. These expenses include payroll and related benefits, stock-based compensation, professional fees (such as legal and accounting), insurance, and travel expenses.
It is important to note that certain centrally managed general and administrative expenses are allocated specifically to restaurant locations. These allocated expenses are then reflected in the owned restaurant operating expenses. Examples of these shared services include reservations, events, and marketing.
Benihana anticipates that general and administrative expenses will become more efficient as the company grows and implements best practices and cost-saving measures. This suggests that while these costs are currently significant, Benihana aims to manage and potentially reduce them over time, which could benefit franchisees through improved overall financial performance.