What was the total lease cost for Benihana as of December 31, 2021?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
fied as of December 31, 2021 were as follows for each year ending (in thousands):
| 2022 | $ 90 |
|---|---|
| 2023 | 79 |
| 2024 | 45 |
| 2025 | 44 |
| 2026 | 37 |
| Thereafter | 93 |
| Total future estimated deferred license revenue | $ 388 |
Note 9 – Leases
The components of lease expense for the period were as follows (in thousands):
| December 31, | December 31, | |||
|---|---|---|---|---|
| 2021 | 2020 | |||
| Lease cost |
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2024 FDD)
According to Benihana's 2024 Franchise Disclosure Document, the total lease cost as of December 31, 2021, was $21,686. This figure includes several components: operating lease costs of $13,602, variable lease costs of $7,400, and short-term lease costs of $684.
For a prospective Benihana franchisee, understanding the composition of these lease costs is crucial. Operating lease costs typically cover the base rent for the restaurant location. Variable lease costs can fluctuate based on factors like sales performance or other operational metrics. Short-term lease costs are for leases with a term of 12 months or less.
It's important to note that these figures represent Benihana's overall lease expenses, and the specific lease costs for an individual franchise location will vary depending on factors such as location, size, and lease terms. Reviewing the lease terms carefully and understanding how variable lease costs are calculated is essential for managing expenses and forecasting profitability.