What was the total finance lease cost for Benihana as of December 31, 2023?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
to performance obligations that are unsatisfied as of December 31, 2023 were as follows for each year ending (in thousands):
| 2024 | $ 44 |
|---|---|
| 2025 | 44 |
| 2026 | 37 |
| 2027 | 34 |
| 2028 | 34 |
(2) Deferred gift card revenue and advance party deposits on goods and services yet to be provided are included in deferred gift card revenue and other on the consolidated balance sheets.
(3) Konavore rewards program is included in accrued expenses on the consolidated balance sheets.
Total future estimated deferred license revenue $ 218
F-18
Note 8 – Leases
The components of lease expense for the period were as follows
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2024 FDD)
According to Benihana's 2024 Franchise Disclosure Document, the total finance lease cost as of December 31, 2023, was $292. This figure comprises the amortization of right-of-use (ROU) assets, which amounted to $210, and the interest on lease liabilities, which was $82.
For a prospective Benihana franchisee, understanding these lease costs is crucial. Finance leases typically involve assets like property or equipment that Benihana essentially owns over the lease term. The amortization of ROU assets reflects the depreciation of these assets, while the interest on lease liabilities represents the cost of financing these assets through leasing. These costs, along with operating lease costs, variable lease costs, and short-term lease costs, contribute to the overall lease expenses that Benihana must manage.
It's also useful to compare these figures with the previous year. In 2022, the total finance lease cost was $84, consisting of $59 in amortization of ROU assets and $25 in interest on lease liabilities. The weighted average remaining term for these finance leases was 4 years as of December 31, 2023, and the weighted average discount rate was 9.17%. These metrics provide insight into the nature and duration of Benihana's financial obligations under these leases.