What do Benihana's repairs and maintenance expenses consist of?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
Repairs and maintenance. Repairs and maintenance consist of general repair work to maintain our facilities, and computer maintenance contracts. We expect these costs to increase at each facility as they get older.
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2024 FDD)
According to Benihana's 2024 Franchise Disclosure Document, repairs and maintenance expenses for company-owned restaurants include general repair work to maintain the facilities and computer maintenance contracts. These costs are expected to increase as the facilities age.
For a Benihana franchisee, this means budgeting for ongoing maintenance to keep the restaurant in good condition. These expenses are part of the overall "owned restaurant operating expenses," which Benihana measures as a percentage of net revenues. Other components of this category include payroll, occupancy costs, direct operating expenses, outside services, and marketing.
Prospective franchisees should consider that repair and maintenance costs can vary significantly depending on the age and condition of the restaurant location. It is important to factor in potential increases in these costs over time, as Benihana anticipates them to rise as the facilities get older. Understanding these costs is crucial for accurate financial planning and maintaining the Benihana brand standards.