What was the total operating lease cost for a Benihana franchise as of December 31, 2023?

According to Benihana's 2024 Franchise Disclosure Document, the operating lease cost as of December 31, 2023, was $16,466. This figure represents the cost associated with operating leases held by Benihana. Operating leases are agreements where Benihana uses an asset (typically real estate for restaurant locations) without owning it outright.

For a prospective Benihana franchisee, understanding lease costs is crucial. These costs can significantly impact the profitability of the restaurant. The FDD also lists other lease-related expenses, such as variable lease costs ($12,158) and short-term lease costs ($1,114), which franchisees should consider in their financial planning. The total lease cost for 2023 was $30,030.

Additionally, the FDD provides insights into the terms and conditions of these leases. The weighted average remaining lease term for operating leases is 13 years, with a weighted average discount rate of 8.74%. These details are important for assessing the long-term financial obligations associated with leasing restaurant locations. Franchisees should carefully review these lease terms and consider how they might affect their business over the long term.

It is important to note that these figures reflect the lease costs for the company's owned restaurants and may not directly translate to the specific lease costs a franchisee might incur. However, this information provides a valuable benchmark and highlights the significance of lease agreements in the overall financial structure of a Benihana franchise.