What was the revenue recognized by Benihana from deferred license revenue as of December 31, 2022?

According to Benihana's 2024 Franchise Disclosure Document, the revenue recognized from deferred license revenue as of December 31, 2022, was $79,000. This figure represents the amount of previously deferred revenue that Benihana recognized as income during that period. Deferred revenue typically arises from initial licensing fees and upfront fees related to management and license agreements, which Benihana recognizes on a straight-line basis over the term of the agreement.

Deferred revenue recognition is a common accounting practice where revenue is not immediately recognized when cash is received but is instead recognized over time as the service is provided or the license is used. For Benihana, this means that initial licensing fees are spread out as revenue over the life of the agreement, rather than being recognized all at once. This approach provides a more accurate picture of Benihana's financial performance by matching revenue with the related services provided.

In addition to deferred license revenue, Benihana also deals with deferred revenue from gift cards and advanced party deposits. As of December 31, 2022, the revenue recognized from deferred gift card revenue was $1,295,000, and the revenue recognized from advanced party deposits was $248,000. These figures indicate the extent to which Benihana relies on these sources of revenue and how they are recognized over time as services are rendered or gift cards are redeemed.