What was the total management, license, and incentive fee revenue for Benihana in 2020?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
| 2021 2020 Revenues: Owned restaurant net revenue 95.4 % 96.2 % Management, license and incentive fee revenue 4.6 % 3.8 % Total revenues 100.0 % 100.0 % Cost and expenses: Owned operating expenses: Owned restaurant cost of sales (1) 25.5 % 24.9 % Owned restaurant operating expenses (1) 54.7 % 63.7 % Total owned operating expenses (1) 80.2 % 88.6 % General and administrative (including stock-based compensation of 1.3% and 1.2% for the years ended December 31, 2021 and 2020, respectively) 9.2 % 9.8 % Depreciation and amortization 3.9 % 7.1 % COVID-19 related expenses 2.1 % 3.9 % Transaction costs 0.1 % 0.8 % Lease termination expenses 0.7 % 2.3 % Agreement restructuring expenses 0.2 % 0.3 % Pre-opening expenses 0.4 % 0.1 % Other income, net —% —% Total costs and expenses 93.0 % 109.6 % Operating income (loss) 7.0 % (9.6)% Other (income) expenses, net: Interest expense, net of interest income 1.4 % 3.8 % Loss on early debt extinguishment 0.2 % —% Gain on CARES Act Loan Forgiveness (6.7)% —% Total other (income) expenses, net (5.1)% 3.8 % Income (loss) before provision (benefit) for income taxes 12.1 % (13.4)% Provision (benefit) for income taxes 0.6 % (3.8)% Net income (loss) 11.5 % (9.6)% Less: net income (loss) attributable to noncontrolling interest 0.2 % (0.6)% 11.3 % (9.0)% | For the year ended December 31, |
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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, management, license, and incentive fee revenue accounted for 3.8% of total revenues in 2020. This figure represents the income Benihana received from its franchise operations, licensing agreements, and any incentive-based fees. In comparison, the same revenue stream accounted for 4.6% of total revenues in 2021, indicating a slight increase in this revenue category year-over-year.
For a prospective Benihana franchisee, this information provides insight into the revenue structure of the company. While the majority of revenue comes from owned restaurant net revenue, the management, license, and incentive fee revenue still contributes a notable percentage. Understanding this breakdown can help franchisees assess the stability and diversification of Benihana's income sources.
It's important to note that these percentages do not provide the actual dollar amounts. To fully understand the financial implications, a potential franchisee would need to know the total revenues for both 2020 and 2021. This would allow them to calculate the actual income derived from management, license, and incentive fees and assess its significance to Benihana's overall financial performance. A prospective franchisee should ask Benihana for the specific dollar amounts to perform a complete financial analysis.