How much did Benihana spend on the purchase of property and equipment in 2021?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
f directors, the Company's public statements, operating plans, and industry data to identify any evidence that may contradict management's assumptions
- We tested the completeness and accuracy of the underlying source information used by management to identify quantitative indicators of impairment.
/s/ Deloitte & Touche LLP
Denver, Colorado March 9, 2023
We have served as the Company's auditor since 2021.
F-3
THE ONE GROUP HOSPITALITY, INC. CONSOLIDATED BALANCE SHEETS (in thousands, except share information)
| December 31, 2022 | December 31, 2021 | ||
|---|---|---|---|
| ASSETS | |||
| Current assets: | |||
| Cash and cash equivalents | $ 55,121 | $ | 23,614 |
| Accounts receivable | 15,220 | 11,356 | |
| Inventory | 5,728 | 3,915 | |
| Other current assets | 2,091 | 3,666 | |
| Due from related parties | 376 | 376 | |
| Total current assets | 78,536 | 42,927 | |
| Property and equipment, net | 94,087 | 69,638 | |
| Operating lease right-of-use assets | 85,161 | 85,395 | |
| Deferred tax assets, net | 12,323 | 12,313 | |
| Intangibles, net | 15,290 | 15,505 | |
| Other assets | 4,774 | 3,199 | |
| Security deposits | 853 | 858 | |
| Total assets | $ 291,024 | $ | 229,835 |
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||
| Current liabilities: | |||
| Accounts payable | $ 13,055 | $ | 11,094 |
| Accrued expenses | 22,40 |
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2024 FDD)
According to Benihana's 2024 Franchise Disclosure Document, the net value of property and equipment as of December 31, 2021, was $69,638. This figure represents the historical cost of property and equipment less any accumulated depreciation. It does not directly reflect the amount Benihana spent specifically on purchases of property and equipment during 2021. Instead, it shows the net book value of these assets at the end of the year.
To understand the actual capital expenditures on property and equipment during 2021, one would need to analyze the changes in the property and equipment account, considering both purchases and disposals, as well as depreciation. The FDD excerpt does mention that depreciation and amortization related to property and equipment amounted to $9.9 million for the year ended December 31, 2021. This indicates the expense recognized for the wear and tear or consumption of these assets during the year.
For a prospective franchisee, this information is relevant in understanding the capital intensity of Benihana's operations. While the FDD provides the net value of property and equipment and the depreciation expense, it does not detail the specific amount of capital expenditures made during the year. A potential franchisee should inquire with Benihana about the typical capital expenditure budget for new restaurants or renovations to existing locations to gain a clearer picture of the investment required for property and equipment.