What was the total 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
**THE O
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 ended December 31, 2022, was $15,779. This revenue is a component of Benihana's overall revenue, which also includes revenue from owned restaurants.
For a prospective franchisee, understanding the breakdown of revenue sources is crucial. While a significant portion of Benihana's revenue comes from its owned restaurants, the management, license, and incentive fees represent a smaller but still substantial contribution. This indicates the importance of these fees in Benihana's business model.
It's important to note that these fees are recognized as revenue in the period when the restaurant's sales occur. Initial licensing fees and upfront fees related to management and license agreements are recognized on a straight-line basis over the term of the agreement. This accounting practice can affect how revenue is reported and should be considered when evaluating the financial performance of Benihana.