In what unit of currency are the consolidated balance sheets for Benihana presented?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
s include the opportunity to secure tenant improvement allowances to partially offset the cost of developing and opening the related restaurants. Generally, landlords recover the cost of such allowances from increased minimum rents. However, there can be no assurance that such allowances will be available to us on each project that we select for development.
Cash Flows
The following table summarizes the statement of cash flows for the years ended December 31, 2022 and December 31, 2021 (in thousands):
| | For
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2024 FDD)
According to Benihana's 2024 Franchise Disclosure Document, the consolidated balance sheets are presented in U.S. dollars. For example, the net cash provided by operating activities was $25,251 in 2022 and $30,966 in 2021. These figures, along with others related to investing and financing activities, are explicitly denoted with a dollar sign ($), indicating that the financial reporting is done in United States currency.
For a prospective Benihana franchisee, this means that all financial figures within the FDD, including revenues, expenses, assets, and liabilities, are reported in U.S. dollars. This standardization simplifies financial analysis and comparison for franchisees based in the United States. It also provides clarity in understanding the financial performance and position of Benihana, as there is no need to account for currency conversion when evaluating the data.
However, it's important to note that Benihana's foreign operations are translated into U.S. dollars for the consolidated balance sheets. While this provides a unified view, franchisees should be aware that currency exchange rates can impact the reported financial results. Fluctuations in exchange rates may lead to gains or losses, which are recorded as part of comprehensive income. Therefore, while the reporting currency is the U.S. dollar, the underlying performance of foreign subsidiaries can be affected by currency movements.
In summary, the use of U.S. dollars in Benihana's consolidated balance sheets offers a consistent and easily understandable format for prospective franchisees. While currency translation adjustments exist for foreign operations, the primary reporting currency remains the U.S. dollar, facilitating financial analysis and decision-making for those considering investing in a Benihana franchise.