What was the revenue recognized by Benihana from advanced party deposits as of December 31, 2021?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
--|--------------|--------------| | | 2022 | 2021 | | Deferred license revenue (1) | 297 | 388 | | Deferred gift card revenue (2) | 1,680 | 1,769 | | Advanced party deposits (2) | 435 | 260 | | Konavore rewards program (3) | 163 | 136 |
(1) Includes the current and long-term portion of deferred license revenue which are included in other curre
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2024 FDD)
According to Benihana's 2024 Franchise Disclosure Document, the revenue recognized from advanced party deposits as of December 31, 2021, was $60,000. This figure reflects the amount of revenue that Benihana recognized during that year from deposits received for parties or events that had not yet occurred as of that date.
For a prospective Benihana franchisee, this information provides insight into how Benihana accounts for advanced party deposits and how much revenue is generated from these deposits. It is important to note that these deposits represent a liability for Benihana until the service is provided, at which point the revenue is recognized.
Understanding the magnitude of advanced party deposits can help a franchisee gauge the importance of party and event bookings to the overall revenue stream of a Benihana restaurant. It also highlights the need for effective management of these bookings to ensure that services are delivered as promised and revenue is properly recognized.