What was the net value of Benihana's property and equipment as of December 31, 2023?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
sumptions.
- We evaluated the reasonableness of management's undiscounted future cash flows analysis by comparing management's projections to (1) the Company's historical results, (2) internal communications to management and the Board of Directors, (3) external communications made publicly by management, and (4) industry data.
- 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 14, 2024
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)
| | Decemb
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, 2023, was $139,908. This figure represents the depreciated value of all physical assets owned by Benihana, such as buildings, kitchen equipment, furniture, and fixtures, after accounting for accumulated depreciation. This is a snapshot of the company's investment in its physical infrastructure at that specific point in time.
For a prospective franchisee, understanding the net value of property and equipment can provide insights into the capital intensity of the business. A higher net value might indicate a more established infrastructure, while significant changes from year to year could reflect investments in new equipment or the disposal of older assets. Reviewing these figures over several years, as presented in the FDD, can reveal trends in Benihana's capital expenditures and asset management strategies.
It's important to note that this figure is a consolidated value for the entire Benihana organization and not specific to any individual franchise location. Prospective franchisees should inquire about the typical investment required for property and equipment at a new franchise location to understand their own potential capital outlay. Additionally, understanding the depreciation methods used by Benihana can provide a clearer picture of how these assets are valued over time.