What was the total amount of Benihana's delayed draw term facility as of December 31, 2023?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
Note 4 – Accrued Expenses
Accrued expenses consist of the following (in thousands):
| New restaurant construction | $ 6,318 | $ | 1,903 |
|---|---|---|---|
| Payroll and related | 5,655 | 5,249 | |
| VAT and sales taxes | 4,238 | 4,118 | |
| Amounts due to landlords | 2,753 | 2,949 | |
| Interest | 2,396 | 268 | |
| Legal, professional and other services | 1,364 | 626 | |
| Insurance | 545 | 742 | |
| Income taxes and related | 30 | 156 | |
| Other (1) | 5, |
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2024 FDD)
According to Benihana's 2024 Franchise Disclosure Document, the company's delayed draw term facility totaled $49,750 as of December 31, 2023. This is part of Benihana's total long-term debt, which amounted to $73,500 on the same date.
The delayed draw term facility is a component of Benihana's overall debt structure, and it's useful for prospective franchisees to understand how the company manages its finances. The FDD also shows that the delayed draw term facility was slightly higher the previous year, at $50,000 as of December 31, 2022, indicating a decrease of $250 from 2022 to 2023.
For a prospective franchisee, this information provides insight into Benihana's financial obligations and how they are structured. Understanding the company's debt, including the delayed draw term facility, can help franchisees assess the financial stability of the franchisor. It also allows them to consider how these obligations might impact Benihana's ability to support its franchisees or invest in the brand's future growth.