What years are covered by the consolidated statements of earnings of The ONE Group Hospitality, Inc. included in the Benihana FDD?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
Our parent corporation, The ONE Group Hospitality, Inc., a Delaware corporation traded on NASDAQ, with a principal business address at 1624 Market Street, Suite 311, Denver, Colorado 80202 ("The ONE Group"), absolutely and unconditionally guarantees BNC's duties and obligations under any Franchise Agreement entered into with a franchisee buying a franchise pursuant to this Disclosure Document. Attached to this Disclosure Document as Exhibit E are the audited consolidated balance sheets of The ONE Group as of for the fiscal years ended December 31, 2023, December 31, 2022, and December 31, 2021; and the related consolidated statements of earnings, stockholder's equity, and cash flow of The ONE Group for the fiscal years ended December 31, 2023, December 31, 2022, and December 31, 2021. A copy of the guarantee of The One Group Hospitality, Inc. is included as Exhibit H.
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 72–73)
What This Means (2024 FDD)
According to Benihana's 2024 Franchise Disclosure Document, the audited consolidated statements of earnings of The ONE Group Hospitality, Inc. are included as Exhibit E. These statements cover the fiscal years ended December 31, 2023, December 31, 2022, and December 31, 2021. This information is crucial for prospective Benihana franchisees as it provides an overview of the financial performance of Benihana's parent company.
As the parent company guarantees the financial obligations of Benihana under the Franchise Agreement, its financial health directly impacts the stability and reliability of the Benihana franchise system. Reviewing these statements allows potential franchisees to assess the parent company's revenue trends, profitability, and overall financial stability over the three-year period. This helps in evaluating the level of risk associated with investing in a Benihana franchise.
Specifically, the consolidated statements of earnings would show revenues, cost of sales, operating expenses, interest expense, and net income (or loss) for each of the three years. Analyzing these figures and comparing them year-over-year can reveal important trends about the company's growth, efficiency, and ability to generate profits. Any significant fluctuations or negative trends should be carefully scrutinized to understand the underlying causes and potential implications for the franchise system. Furthermore, the consolidated balance sheets and cash flow statements, also included for the same period, provide a more comprehensive view of the parent company's financial condition and liquidity.