What was the total amount Benihana owed for VAT and sales taxes as of December 31, 2022?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
| December 31, 2022 | December 31, 2021 | |
|---|---|---|
| Furniture, fixtures and equipment | $ 33,372 | $ 24,942 |
| Leasehold improvements | 89,121 | 76,500 |
| Less: accumulated depreciation and amortization | (47,528) | (39,425) |
| Subtotal | 74,965 | 62,017 |
| Construction in progress | 16,276 | 5,374 |
| Restaurant smallwares | 2,846 | 2,247 |
| Total | $ 94,087 | $ 69,638 |
Depreciation and amortization related to property and equipment amounted to $11.7 million and $9.9 million for the years ended December 31, 2022 and 2021, respectively. The Company does not depreciate construction in progress until such assets are placed into service.
Note 4 – Accrued Expenses
Accrued expenses consist of the following (in thousands):
|
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2024 FDD)
According to Benihana's 2024 Franchise Disclosure Document, as of December 31, 2022, Benihana owed $4,118 for VAT and sales taxes. This figure represents the amount Benihana had accrued but not yet paid for these taxes at that specific point in time.
For a prospective franchisee, this information provides insight into the types of financial obligations Benihana, as a company, faces. While franchisees are responsible for managing and paying their own local, state, and federal taxes, understanding the parent company's tax liabilities can offer a broader view of the financial landscape. It's important to note that VAT (Value Added Tax) is more common in countries outside the United States, so this liability may pertain to Benihana's international operations.
Accrued expenses like VAT and sales taxes are a normal part of business operations. Monitoring these figures over time, as presented in the table, can reveal trends in Benihana's tax obligations. A significant increase in this category might warrant further investigation to understand the underlying causes and potential implications for the company's financial health. Franchisees should focus on their own tax responsibilities but can use this information as a general indicator of the financial management practices within the Benihana organization.