On what page of the Benihana FDD can I find information regarding controls and procedures?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
Item 9A. Controls and Procedures
Evaluation of Disclosure Controls and Procedures
We maintain disclosure controls and procedures that are designed to ensure that information required to be disclosed in our reports under the Securities Exchange Act of 1934, as amended (the "Exchange Act"), is recorded, processed, summarized and reported within the time periods specified in the SEC's rules and forms, and that such information is accumulated and communicated to management, including our Chief Executive Officer ("CEO") and Chief Financial Officer ("CFO"), as appropriate, to allow timely decisions regarding required disclosure. In designing and evaluating the disclosure controls and procedures, management recognized that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives, as our controls are designed to do, and management necessarily applies its judgment in evaluating the risk and cost benefit relationship related to controls and procedures.
Our Chief Executive Officer and Chief Financial Officer, have reviewed the effectiveness of our disclosure controls and procedures as of December 31, 2021 and, based on this evaluation, have concluded that due to two material weaknesses in our internal control over financial reporting described below, our disclosure controls and procedures were not effective as of December 31, 2021. These material weaknesses did not result in a material misstatement of the annual or interim consolidated financial statements.
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2024 FDD)
According to Benihana's 2024 Franchise Disclosure Document, information regarding controls and procedures can be found on page 37. Specifically, Item 9A discusses 'Controls and Procedures' and 'Evaluation of Disclosure Controls and Procedures'.
This section details how Benihana maintains disclosure controls and procedures to ensure that information required in their reports under the Securities Exchange Act of 1934 is accurately recorded, processed, summarized, and reported within the SEC's specified timeframes. These controls are designed to ensure that important information is communicated to management, including the CEO and CFO, for timely decision-making regarding required disclosures.
The document also mentions that the Chief Executive Officer and Chief Financial Officer reviewed the effectiveness of these disclosure controls and procedures as of December 31, 2021. Based on their evaluation, they concluded that the disclosure controls and procedures were not effective due to two material weaknesses in internal control over financial reporting. However, it's noted that these weaknesses did not result in any material misstatement of the annual or interim consolidated financial statements.
This information is crucial for potential franchisees as it provides insight into Benihana's internal controls and financial reporting practices. Understanding the company's approach to disclosure and internal control can help franchisees assess the overall risk and stability of the franchise system.