What was the total amount of management, license, and incentive fee revenue for Benihana in 2022?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
| December 31, 2022 | December 31, 2021 | ||
|---|---|---|---|
| ASSETS | |||
| Current assets: | |||
| Cash and cash equivalents | $ 55,121 | $ | 23,614 |
| Accounts receivable | 15,220 | 11,356 | |
| Inventory | 5,728 | 3,915 | |
| Other current assets | 2,091 | 3,666 | |
| Due from related parties | 376 | 376 | |
| Total current assets | 78,536 | 42,927 | |
| Property and equipment, net | 94,087 | 69,638 | |
| Operating lease right-of-use assets | 85,161 | 85,395 | |
| Deferred tax assets, net | 12,323 | 12,313 | |
| Intangibles, net | 15,290 | 15,505 | |
| Other assets | 4,774 | 3,199 | |
| Security deposits | 853 | 858 | |
| Total assets | $ 291,024 | $ | 229,835 |
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||
| Current liabilities: | |||
| Accounts payable | $ 13,055 | $ | 11,094 |
| Accrued expenses | 22,409 | 23,155 | |
| Deferred gift card revenue and other | 2,115 | 2,029 | |
| Current portion of operating lease liabilities | 6,336 | 5,396 | |
| Current portion of long-term debt | 1,500 | 500 | |
| Other current liabilities | 256 | 90 | |
| Total current liabilities | 45,671 | 42,264 | |
| Operating lease liabilities, net of current portion | 105,247 | 103,616 | |
| Long-term debt, net of current portion | 70,544 | 23,132 | |
| Other long-term liabilities | 972 | 298 | |
| Total liabilities | 222,434 | 169,310 | |
| Commitments and contingencies (Note 15) | |||
| Stockholders' equity: | |||
| Common stock, $0.0001 par value, 75,000,000 shares authorized; 32,829,995 issued | |||
| and 31,735,423 outstanding at December 31, 2022 and 32,138,396 shares issued and | |||
| 32,125,762 outstanding at December 31, 2021 | 3 | 3 | |
| Preferred stock, $0.0001 par value, 10,000,000 shares authorized; no shares issued | |||
| and outstanding at December 31, 2022 and December 31, 2021, respectively | — | — | |
| Treasury stock, 1,094,572 and 12,634 shares at cost at December 31, 2022 and | |||
| December 31, 2021, respectively | (7,169) | (37) | |
| Additional paid-in capital | 55,583 | 53,481 | |
| Retained earnings | 24,166 | 10,632 | |
| Accumulated other comprehensive loss | (2,869) | (2,645) | |
| Total stockholders' equity | 69,714 | 61,434 | |
| Noncontrolling interests | (1,124) | (909) | |
| Total equity | 68,590 | 60,525 | |
| Total liabilities and equity | $ 291,024 | $ | 229,835 |
See notes to the consolidated financial statements.
F-4
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Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2024 FDD)
According to Benihana's 2024 Franchise Disclosure Document, the total management, license, and incentive fee revenue for the year ending December 31, 2022, was $15,779. This revenue is a component of Benihana's overall revenue streams, which also include revenue from owned restaurants. These fees are typically derived from management agreements, license agreements, and incentive structures tied to the performance of managed venues.
For a prospective Benihana franchisee, understanding the breakdown of revenue sources is crucial. While the majority of revenue comes from owned restaurants, the management, license, and incentive fees represent a significant portion. This indicates that Benihana also earns income from managing or licensing its brand to other operators, which could present opportunities for franchisees to potentially participate in management or licensing roles in the future.
The FDD also indicates that these fees are recognized as revenue in the period the restaurant's sales occur, and initial licensing fees are recognized over the term of the agreement. This revenue recognition method provides a steady stream of income for Benihana. The consistent generation of management, license, and incentive fee revenue demonstrates Benihana's ability to leverage its brand and operational expertise to create additional income streams beyond direct restaurant sales.
It is important for potential franchisees to further investigate the specific terms and conditions under which these management, license, and incentive fees are generated. Understanding the factors that influence these revenue streams can provide valuable insights into the overall financial health and growth potential of Benihana.