What was the total value of Benihana's security deposits as of December 31, 2021?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
inancial statements. We believe that our audit provides a reasonable basis for our opinion.
/s/ Plante & Moran PLLC
We served as the Company's auditor from 2018 to 2021.
Boulder, Colorado
March 19, 2021
F-4
THE ONE GROUP HOSPITALITY, INC. CONSOLIDATED BALANCE SHEETS (in thousands, except share information)
| December 31, 2021 | December 31, 2020 | |
|---|---|---|
| ASSETS | ||
| Current assets: | ||
| Cash and cash equivalents | $ 23,614 | $ 24,385 |
| Accounts receivable | 11,356 | 5,777 |
| Inventory | 3,915 | 2,490 |
| Other current assets | 3,666 | 1,348 |
| Due from re |
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 their security deposits as of December 31, 2021, was $858. This figure is part of the company's overall assets, which totaled $229,835 as of that date. Security deposits are classified as 'other assets' on the balance sheet.
For a prospective Benihana franchisee, security deposits typically represent funds held to cover potential liabilities or damages related to leased properties or equipment. These deposits are usually refundable at the end of the lease term, assuming all obligations are met. The amount of security deposits can fluctuate year to year, as seen by the slight decrease from $904 in 2020 to $858 in 2021.
Understanding the level of security deposits Benihana holds can provide insight into the company's leasing arrangements and potential future cash flow, as these deposits are eventually returned if lease terms are properly fulfilled. Franchisees may want to inquire about the nature of these security deposits and how they might relate to their own lease agreements or other contractual obligations.