What was the impact on equity from the purchase of noncontrolling interests for Benihana in 2021?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
inancial statements. We believe that our audit provides a reasonable basis for our opinion.
/s/ Plante & Moran PLLC
We served as the Company's auditor from 2018 to 2021.
Boulder, Colorado
March 19, 2021
F-4
THE ONE GROUP HOSPITALITY, INC. CONSOLIDATED BALANCE SHEETS (in thousands, except share information)
| December 31, 2021 | December 31, 2020 | |
|---|---|---|
| ASSETS | ||
| Current assets: | ||
| Cash and cash equivalents | $ 23,614 | $ 24,385 |
| Accounts receivable | 11,356 | 5,777 |
| Inventory | 3,915 | 2,490 |
| Other current assets | 3,666 | 1,348 |
| Due from related parties | 376 | 376 |
| Total current assets | 42,927 | 34,376 |
| Property and equipment, net | 69,638 | 67,344 |
| Operating lease right-of-use assets | 85,395 | 80,960 |
| Deferred tax assets, net | 12,313 | 13,226 |
| Intangibles, net | 15,505 | 16,313 |
| Other assets | 3,199 | 2,446 |
| Security deposits | 858 | 904 |
| Total assets | $ 229,835 | $ 215,569 |
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||
| Current liabilities: | ||
| Accounts payable | $ 11,094 | $ 7,404 |
| Accrued expenses | 23,155 | 15,684 |
| Deferred license revenue | 90 | 207 |
| Deferred gift card revenue and other | 2,029 | 1,990 |
| Current portion of operating lease liabilities | 5,396 | 4,817 |
| Current portion of CARES Act Loans | — | 10,057 |
| Current portion of long-term debt | 500 | 588 |
| Total current liabilities | 42,264 | 40,747 |
| Deferred license revenue, long-term | 298 | 953 |
| Operating lease liabilities, net of current portion | 103,616 | 98,569 |
| CARES Act Loans, net of current portion | — | 8,257 |
| Long-term debt, net of current portion | 23,132 | 45,064 |
| Total liabilities | 169,310 | 193,590 |
| Commitments and contingencies (Note 15) | ||
| Stockholders' equity: | ||
| Common stock, $0.0001 par value, 75,000,000 shares authorized; 32,138,396 issued | ||
| and 32,125,762 outstanding at December 31, 2021 and 29,083,183 shares issued and | ||
| outstanding at December 31, 2020 | 3 | 3 |
| Preferred stock, $0.0001 par value, 10,000,000 shares authorized; no shares issued | ||
| and outstanding at December 31, 2021 and December 31, 2020, respectively | — | — |
| Treasury stock, 12,634 shares and 0 shares at December 31, 2021 and December 31, | ||
| 2020, respectively | (37) | — |
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2024 FDD)
According to Benihana's 2024 Franchise Disclosure Document, the impact on equity from noncontrolling interests in 2021 was a deduction of $1,200. This figure is part of the broader presentation of Benihana's financial position, reflecting how noncontrolling stakes in the company's entities affect the overall equity calculation.
Specifically, the line item "Noncontrolling interests" shows a balance of $(1,200) as of December 31, 2020. This indicates that Benihana accounts for the portion of equity in its subsidiaries not attributable to the parent company's shareholders. These interests represent claims against the subsidiary's assets and earnings by minority shareholders. The change in this balance from $(909) in 2021 to $(1,200) in 2020 reflects a decrease in the value attributable to noncontrolling interests year over year.
For a prospective Benihana franchisee, understanding these figures provides insight into the financial structure of the overall Benihana organization. While the franchisee's restaurant operations will primarily impact the "Retained earnings (accumulated deficit)" line, the noncontrolling interests reflect the complexity of Benihana's corporate structure and how different ownership stakes are accounted for in its consolidated financials. Reviewing these figures over several years, if available, can reveal trends in how Benihana manages its subsidiary relationships and the associated equity implications.