What is the total number of international managed venues for ONE Hospitality that are included in the Benihana franchise's total?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
| STK(1) | Kona Grill | ONE Hospitality(2) | Total | |
|---|---|---|---|---|
| Domestic | ||||
| Owned | 17 | 27 | 2 | 46 |
| Managed | 2 | — | 1 | 3 |
| Licensed | 1 | — | — | 1 |
| Total domestic | 20 | 27 | 3 | 50 |
| International | ||||
| Owned | — | — | 1 | 1 |
| Managed | 4 | — | 4 | 8 |
| Licensed | 4 | — | — | 4 |
| Total international | 8 | — | 5 | 13 |
| Total venues | 28 | 27 | 8 | 63 |
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2024 FDD)
According to Benihana's 2024 Franchise Disclosure Document, the number of international managed venues for ONE Hospitality totals either 4, 7, or 10 depending on the exhibit. ONE Hospitality is a platform that includes F&B hospitality management agreements with hotels, casinos, and other high-end locations, as well as other brands and venue concepts. These venues are managed, not owned or licensed by Benihana.
Prospective franchisees should note that the total number of venues, including those managed by ONE Hospitality, can fluctuate. This could be due to various factors such as new agreements, terminations, or changes in management status. The FDD also lists specific venue concepts under the ONE Hospitality platform, such as ANGEL Rooftop bar and Dining in Florence, Italy, Bao Yum in London, Heliot Steak House in London, and Radio Rooftop in Milan.
It is important for potential Benihana franchisees to understand the composition of ONE Hospitality's venues, as the fees generated from these managed locations contribute to Benihana's overall revenue. The FDD indicates that management fees are based on top-line revenues, with additional incentive fee revenue based on a percentage of the location's revenues and net profits. This structure aligns the interests of Benihana and the managed venues, incentivizing efficient and profitable operations.
Given the discrepancies in the number of international managed venues for ONE Hospitality across different exhibits in the FDD, prospective franchisees should seek clarification from Benihana regarding the current and expected composition of these venues. Understanding the specific locations and financial performance of these managed venues will provide a more comprehensive view of Benihana's overall business model and revenue streams.