What was the total value of leasehold improvements for Benihana as of December 31, 2022?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
15, 2023, with early adoption permitted. The Company is evaluating the impact of adopting this ASU on its disclosures.
In December 2023, the FASB issued ASU No. 2023-09, "Income Taxes (Topic 740): Improvements to Income Tax Disclosures." The ASU includes amendments requiring enhanced income tax disclosures, primarily related to standardization and disaggregation of rate reconciliation categories and income taxes paid by jurisdiction. The guidance is effective for fiscal
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2024 FDD)
According to Benihana's 2024 Franchise Disclosure Document, the total value of leasehold improvements as of December 31, 2022, was $89,121. Leasehold improvements represent the costs associated with improvements made to leased properties. These improvements are considered assets and are subject to depreciation over time.
For a prospective Benihana franchisee, this figure provides insight into the level of investment Benihana has made in its physical locations. It is important to note that this value reflects the total for Benihana and not an individual franchise location. The franchisee will likely incur their own leasehold improvement costs when setting up their restaurant.
Understanding the depreciation of these assets is also crucial. Benihana depreciates leasehold improvements over the shorter of their estimated useful lives or the remaining term of the associated lease. This depreciation impacts the company's financial statements and could affect profitability calculations for a franchisee as well.