What was the total value of Benihana's cash and cash equivalents as of December 31, 2023?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
sumptions.
- We evaluated the reasonableness of management's undiscounted future cash flows analysis by comparing management's projections to (1) the Company's historical results, (2) internal communications to management and the Board of Directors, (3) external commu
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2024 FDD)
According to Benihana's 2024 Franchise Disclosure Document, the company's cash and cash equivalents totaled $21,047 as of December 31, 2023. This figure represents the amount of readily available cash and assets that Benihana had on hand at the end of the fiscal year.
For a prospective franchisee, understanding the franchisor's cash position is crucial. A healthy cash balance suggests financial stability and the ability to support franchisees. However, a lower cash balance compared to previous years, as seen in Benihana's case (with $55,121 in 2022), might warrant further investigation into the company's financial management and strategic decisions.
It's important to note that cash and cash equivalents are just one aspect of Benihana's overall financial health. A comprehensive review of the company's balance sheet, income statement, and cash flow statement is necessary to gain a complete picture of its financial performance and stability. Prospective franchisees should consult with a financial advisor to analyze these documents and assess the financial risks and opportunities associated with investing in a Benihana franchise.