What was the value of Benihana's operating lease right-of-use assets as of December 31, 2022?
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 communications made publicly by management, and (4) industry data.
- We tested the completeness and accuracy of the underlying source information used by management to identify quantitative indicators of impairment.
/s/ Deloitte & Touche LLP
Denver, Colorado March 14, 2024
We have served as the Company's auditor since 2021.
F-3
THE ONE GROUP HOSPITALITY, INC. CONSOLIDATED BALANCE SHEETS (in thousands, except share information)
| | Decemb
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2024 FDD)
According to Benihana's 2024 Franchise Disclosure Document, the value of their operating lease right-of-use assets as of December 31, 2022, was $85,161.
Operating lease right-of-use assets represent Benihana's rights to use leased properties for the term of the lease. These assets are recognized on the balance sheet and reflect the value of the company's long-term lease agreements for restaurant locations and other facilities. The value is influenced by factors such as the lease terms, rental rates, and the remaining lease periods.
Prospective franchisees should understand that these lease obligations are a significant part of Benihana's financial structure. While franchisees do not directly inherit these specific corporate leases, understanding the company's overall lease strategy and obligations can provide insight into the stability and long-term planning of the Benihana brand. Franchisees may want to inquire about how Benihana manages its real estate portfolio and how it selects locations for new franchise restaurants.