What was the value of Benihana's operating lease right-of-use assets 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 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, 2023, was $95,075. This figure represents the company's rights to use leased assets, such as properties, for the term of the lease. These assets are recognized on the balance sheet as a result of accounting standards related to lease agreements.
For a prospective Benihana franchisee, understanding the value of these assets can provide insight into the company's long-term obligations and financial health. Operating leases are a common way for businesses to acquire the use of property and equipment without purchasing them outright. The right-of-use asset reflects the value Benihana places on these leased assets.
It's important to note that this figure is a snapshot in time and can change due to various factors, such as new leases, lease modifications, or changes in accounting standards. Reviewing the corresponding lease liabilities alongside these assets provides a more complete picture of Benihana's leasing strategy and its impact on the company's financial position. Franchisees should consider how these lease obligations might affect the franchisor's ability to support its franchisees and invest in the brand.