Has Benihana filed a report on and attestation to its management's assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act by the registered public accounting firm that prepared or issued its audit report?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
Indicate by check mark whether the registrant has filed a report on and attestation to its management's assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the
registered public accounting firm that prepared or issued its audit report. ☒
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2024 FDD)
According to the 2024 Franchise Disclosure Document, Benihana has filed a report on and attestation to its management's assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report.
This indicates that Benihana is subject to the Sarbanes-Oxley Act, which requires public companies to establish and maintain internal controls over financial reporting. Section 404(b) specifically requires an independent auditor to attest to management's assessment of these controls. The checkmark confirms that Benihana has complied with this requirement.
For a potential Benihana franchisee, this suggests that the company adheres to a higher standard of financial accountability and transparency. The Sarbanes-Oxley Act aims to protect investors by ensuring the reliability of financial reporting. This compliance may provide a level of comfort regarding the financial stability and reporting practices of Benihana.