What changed in this filing

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Item 1. Business

2021-01-15 compared with 2019-12-20 · 319 added, 143 removed, 423 unchanged (52% of the section changed)

As of September

28, 2019, Flanigan’s Enterprises, Inc., a Florida corporation, together with its subsidiaries,(i) operates 26 units, consisting

of restaurants, package liquor stores and combination restaurants/package liquor stores that we either own or have operational

control over and partial ownership in;

and (ii) franchises an additional five units, consisting of two restaurants (one of which

we operate) and three combination restaurants/package liquor stores.

The foregoing excludes an adult entertainment club that we

owned but did not operate and which was permanently closed on September 20, 2018 due to local legislation which prohibited the

operation of the club as it was then operated.

As of October 3, 2020,

Flanigan’s Enterprises, Inc., a Florida corporation, together with its subsidiaries (“we”, “our”,

“ours”

and “us”

as the context requires), (i) operates 27 units, consisting of restaurants, package liquor

stores and combination restaurants/package liquor stores that we either own or have operational control over and partial ownership

and (ii) franchises an additional five units, consisting of two restaurants (one of which we operate) and three combination

restaurants/package liquor stores.

The table below provides information concerning the type (i.e.

restaurant, package

liquor store or combination restaurant/package liquor store) and ownership of the units (i.e.

restaurant, package liquor store

or combination restaurant/package liquor store) and ownership of the units (i.e.

whether (i) we own 100% of the unit;

(ii) the unit is owned by a limited partnership of which we are the sole general partner and/or have invested in;

unit is franchised by us), as of September 28, 2019 and as compared to September 29, 2018.

With the exception of “The Whale’s

Rib”, a restaurant we operate but do not own, all of the restaurants operate under our service mark “Flanigan’s

Seafood Bar and Grill”

and all of the package liquor stores operate under our service mark “Big Daddy’s Liquors”.

unit is owned by a limited partnership of which we are the sole general partner and/or have invested in;

or (iii) the unit is franchised

by us), as of October 3, 2020 and as compared to September 28, 2019.

With the exception of “The Whale’s Rib”,

a restaurant we operate but do not own, all of the restaurants operate under our service mark “Flanigan’s Seafood Bar

and Grill”

and all of the package liquor stores operate under our service marks “Big Daddy’s Liquors”

“Big Daddy’s Wine & Liquors.”

TYPES OF UNITS

Company-Owned:

Combination package liquor

store and restaurant

Combination package liquor store and restaurant

Restaurant only

Package liquor store only

Company Managed

Restaurants Only :

Company Managed Restaurants Only :

Limited partnerships

Unrelated Third Party

Company Owned Club:

TOTAL - Company

Owned/Operated Units:

TOTAL –

Company-Owned/Operated Units

Franchised Units

(1) Our combination

package liquor store and restaurant located at 2505 N.

University Drive, Hollywood, Florida (Store #19) has been closed since October

2018 due to fire damage.

Revenues and expenses from Store #19 for the period of time the store was open during the first quarter

of our fiscal year 2019, except payroll, are immaterial.

(2) During the fourth quarter of our fiscal

year 2018, the adult entertainment club that we owned but did not operate and which was permanently closed on September 20, 2018

after a federal court in Georgia upheld recently enacted local legislation prohibiting the operation of the club as it was then

(3) We operate a restaurant for one (1)

This unit is included in the table both as a franchised restaurant, as well as a Company-operated restaurant.

____________________

(1) During the first quarter of our fiscal year 2019, our combination package liquor store and restaurant

located at 2505 N.

University Drive, Hollywood, Florida (Store #19) was damaged by a fire which has caused it to be closed since

the first quarter of our fiscal year 2019.

Revenues and expenses from Store #19 for the time Store #19 was open during the first

quarter of our fiscal year 2019 (two (2) days) are immaterial, with the exception of payroll.

Store #19 remains closed.

(2) During the first quarter of our fiscal year 2020, our new package liquor store located at 12776

Kendall Drive, Miami, Florida (Store #45) opened for business.

(3) We operate a restaurant for one (1) franchisee.

This unit is included in the table both as a franchised

restaurant as well as a Company-operated restaurant.

Impact of COVID-19

In March 2020, a novel

strain of coronavirus was declared a global pandemic and a National Public Health Emergency.

The novel coronavirus pandemic and

related “shelter-in-place”

orders and other governmental mandates relating thereto (collectively, “COVID-19”)

adversely affected and will, in all likelihood continue to adversely affect, our restaurant operations and financial results for

the foreseeable future.

Due to COVID-19, from mid-March 2020 through mid-May 2020, we ceased all dining and bar services at all

of our restaurants, limiting service to take-out and delivery only of food, and implemented reduced hours at our retail package

liquor stores.

From mid-May 2020 through the beginning of July 2020, there was a gradual elimination of restrictions on our restaurant

operations, permitting us to, among other things, provide dining for outdoor seating patrons with appropriate social distancing

and provide dining for indoor patrons at up to 50% capacity (depending on the location of the restaurant), but with no bar service

and increased operating hours at our package liquor stores.

From the beginning of July 2020 through the beginning of September

2020, we ceased dine-in service at all of our Miami-Dade County, Florida restaurants, (two Company-owned and six limited partnership

owned restaurants).

Since the beginning of September 2020, we have been offering both food and bar options at all of our restaurants,

including those located in Miami-Dade County, Florida, with appropriate social distancing and dine-in

service at up to 100% capacity, including outdoor dining.

Due to COVID-19, we implemented

(i) certain cost cutting measures including material layoffs at our restaurants and reduced corporate personnel salaries;

a number of changes to our operations such as the establishment of an in-house delivery service and an adjustment to our traditional

staffing model to meet customer demand.

We have been in regular contact with our suppliers and while to date we have not experienced

significant disruptions in our supply chain, we could see future disruptions should the impacts of COVID-19 extend for a considerable

amount of time.

To support our employees, we have implemented work from home support, increased sanitization of high touch, high

traffic areas in our restaurants, retail package liquor stores and corporate offices, provided personal protective equipment for

our employees and increased the frequency of personal hygiene practices.

From March 29, 2020 through May 9, 2020, the salaries

of all our non-executive corporate office personnel were reduced by 20%, the base salaries of our Chief Operating Officer and Chief

Financial Officer were each reduced by 50% and our Chief Executive Officer waived his base salary, representing salary savings

of approximately $135,000 during this period.

Our employee headcount as of fiscal year end 2020 was 1,804 persons reduced from

1,870 persons as of our fiscal year end 2019.

In addition and also

due to COVID-19, we did not make any quarterly distributions to our limited partners for the quarter ended March 31, 2020.

For each of the quarters ended June 30, 2020 and September 30, 2020, we made quarterly distributions to our limited partners

equal to one-half (½) of the amounts that would have been distributed for the quarter ended March 31, 2020.

During the third

quarter of fiscal year end 2020, the United States government passed a $2.0 trillion Coronavirus Aid, Relief and Economic

Security Act (“CARES Act”) designed primarily to help keep businesses running during and after the COVID-19

The CARES Act included provisions for certain deductions and tax credits, filing deadline extensions, filing

payment deadlines and making available certain grant money to assist businesses.

This CARES ACT allowed us to take advantage

of credits, deferments, and deductions, and loans from an unrelated third party lender pursuant to the Paycheck Protection

Program (“PPP Loans”) (described below) during the third quarter of our fiscal year 2020.

As a result, during the third and

fourth quarter of 2020, we reversed certain of our cost cutting measures, including (i) reinstating employees laid off at our

restaurants in anticipation of resuming dine-in service, (ii)restoring corporate personnel and executive salaries and (iii)

paying prior salary reductions.

We do not believe COVID-19

has had a material adverse effect on our access to supplies or labor, although there can be no assurance that there will not be

a significant adverse impact on our supply chain or access to labor in the future.

We are actively monitoring our food suppliers

to assess how they are managing their operations to mitigate supply flow and food safety risks.

To ensure we mitigate potential

supply availability risk, we are building additional inventory back stock levels when appropriate and we have also identified alternative

supply sources in key product categories including but not limited to food, sanitation and safety supplies.

Additional information

regarding the impact of COVID-19 on our business and the CARES Act is set forth within this Part I, Part II Item 1A.

Risk Factors,

Management’s Discussion and Analysis of Financial Condition and Results of Operations, and Item 8.

Financial Statements

and Supplementary Data, Notes to the Consolidated Financial Statements.

History and Development of Our Business

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Pennsylvania area as general partner of several limited partnerships we organized.

In March 1985 we began franchising package liquor

stores and lounges in the South Florida area.

See Note 11 to the consolidated financial statements and the discussion of franchised

units on page 8.

In March 1985, we began franchising package

liquor stores and lounges in the South Florida area.

See Note 13 to the consolidated financial statements and the discussion of

franchised units on page 4.

During our fiscal year

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Our package liquor stores

emphasize high volume business by providing customers with a wide selection of brand name and private label liquors, beer and wines

while offering competitive pricing by meeting the published sales prices of our competitors.

We provide sales training to our package

liquor store personnel.

emphasize high volume business by providing customers with a wide selection of brand name and private label liquors, beers and

wines while offering competitive pricing by meeting the published sales prices of our competitors.

We provide sales training to

our package liquor store personnel.

The stores are open for business seven days a week from 9:00-10:00 a.m.

to 9:00-10:00 p.m., depending upon

demand and local law.

to 9:00-10:00 p.m.,

depending upon demand and local law.

Most of our units have "night windows"

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We own and operate nine package liquor stores in the South Florida area under the name “Big Daddy’s

Liquors”, three of which are jointly operated with restaurants we own.

Liquors”, two of which are jointly operated with restaurants we own.

Franchised Package Liquor

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Restaurants Owned by Affiliated Limited Partnerships

invested along with others, (some of whom are or are affiliated with our officers and directors), in nine limited

partnerships which currently own and operate nine South Florida based restaurants under our service mark

“Flanigan’s Seafood Bar and Grill”.

In addition to being a limited partner in these limited partnerships,

we are the sole general partner of eight of these limited partnerships and manage and control the operations of these

We are only a limited partner in the limited partnership which owns and operates the restaurant located in Fort

Lauderdale, Florida.

We are currently developing a “Flanigan’s Seafood Bar and Grill”

restaurant in

Sunrise, Florida which will be owned by a limited partnership using the same or substantially similar financial arrangement

and of which we will be the sole general partner and may invest as a limited partner.

We have invested along

with others, (some of whom are or are affiliated with our officers and directors), in nine limited partnerships which currently

own and operate nine South Florida based restaurants under our service mark “Flanigan’s Seafood Bar and Grill”.

In addition to being a limited partner in these limited partnerships, we are the sole general partner of eight of these limited

partnerships and manage and control the operations of these restaurants.

We are only a limited partner in the limited partnership

which owns and operates the restaurant located in Fort Lauderdale, Florida.

We are currently developing a “Flanigan’s

Seafood Bar and Grill”

restaurant in Sunrise, Florida which will be owned by a limited partnership using the same or substantially

similar financial arrangement and of which we will be the sole general partner and may invest as a limited partner.

Generally, the terms of

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cash in excess of the 25% of the cash invested in the limited partnership distributed to the investors annually, is paid one-half

(½) to us as a management fee and one-half (1/2) to the investors, (including us), pro-rata based on the investors’

(½) to us as a management fee and one-half (½) to the investors, (including us), pro-rata based on the investors’

investment, as a return of capital.

3 unchanged sentences

based on the investors’

As of September 28, 2019, all eight (8) limited partnerships where we are the general

partner and are eligible to receive a management fee, have returned to their respective investors all cash invested and we receive

an annual management fee equal to one-half (½) of the cash available for distribution by these limited partnerships.

addition to our receipt of distributable amounts from the limited partnerships, we receive a fee equal to 3% of gross sales for

use of our “Flanigan’s Seafood Bar and Grill”

service mark, which use is authorized while we act as general partner

As of October 3, 2020, all eight (8) limited partnerships where we are the general partner

and are eligible to receive a management fee, have returned to their respective investors all cash invested and we receive an annual

management fee equal to one-half (½) of the cash available for distribution by these limited partnerships.

In addition to

our receipt of distributable amounts from the limited partnerships, we receive a fee equal to 3% of gross sales for use of our

“Flanigan’s Seafood Bar and Grill”

service mark, which use is authorized while we act as general partner only.

This 3% fee is “earned”

when sales are made by the limited partnerships and is paid weekly, in arrears.

we will have any additional restaurants under development in the future will be dependent, among other things, on market conditions

will have any additional restaurants under development in the future will be dependent, among other things, on market conditions

and our ability to raise capital.

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interest is owned by persons who are either our officers, directors or their family members.

As of the end of our fiscal year 2019,

this limited partnership has returned to its investors all of their initial cash invested and we receive an annual management fee

equal to one-half (½) of the cash available for distribution by this limited partnership.

This limited partnership has returned

to its investors all of their initial cash invested and we receive an annual management fee equal to one-half (½) of the

cash available for distribution by this limited partnership.

Miami, Florida

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cash available for distribution by this limited partnership.

Sunrise, Florida

During the second quarter of our

fiscal year 2019, we entered into a Lease Agreement (the “Sunrise Lease Agreement”) with a non-affiliated third party

to rent approximately 6,900 square feet of commercial space in Sunrise, Florida where, subject to certain conditions, we anticipate

opening a new restaurant location under our “Flanigan’s Seafood Bar and Grill”

service mark.

During the third

quarter of our fiscal year 2019, we assigned the Sunrise Lease Agreement to a newly formed limited partnership in which we currently

are (i) the sole general partner;

and (ii) our wholly owned subsidiary is the sole limited partner.

While there can be no assurances

that we will be successful in doing so, we intend to sell limited partnership interests to third parties as well as affiliates

of the Company in order to raise net proceeds, in the amount of $5,000,000, which proceeds will be used to renovate this potential

restaurant location.

We anticipate that the new restaurant location’s ownership and operating structure will be substantially

similar to that of our other restaurants owned by limited partnerships.

Fort Lauderdale, Florida

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of the net profit, if any, from the operation of the restaurant.

For our fiscal years ended September 28, 2019 and September 29,

For our fiscal years ended October 3, 2020 and September 28, 2019,

we generated $150,000 and $375,000 of revenue, respectively from providing these management services.

Adult Entertainment Club

Until September

20, 2018, we owned, but did not operate, an adult entertainment nightclub located in Atlanta, Georgia which operated under the

name “Mardi Gras”.

We had a management agreement with an unaffiliated third party to manage the club.

Under our management

agreement, the unaffiliated third party management firm paid us an annual amount, paid monthly, equal to the greater of $150,000

or ten (10%) percent of gross sales from the club, offset by one-half (1/2) of any rental increases, provided our fees would never

be less than $150,000 per year.

For our fiscal years ended September 28, 2019 and September 29, 2018, we generated $0 and $138,000

of revenue, respectively, from the operation of the club.

On September 20, 2018, the adult entertainment club was closed permanently

after a federal court in Georgia upheld recently enacted local legislation which prohibited the operation of the club as it was

then operated and we will no longer receive any revenue under the management agreement.

Operations and Management

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held by us or limited partnerships of which we are the general partner, are restaurant liquor licenses, which do not have quota

restrictions and no purchase or resale value.

A restaurant liquor license is issued to every applicant who meets all of the state

and local licensing requirements, including, but not limited to zoning and minimum restaurant size, seating and menu.

restrictions or purchase or resale value.

A restaurant liquor license is issued to every applicant who meets all of the state and

local licensing requirements, including, but not limited to zoning and minimum restaurant size, seating and menu.

The restaurant

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of operations, advertising, wholesale purchasing, inventory control, handling, storage and dispensing of alcoholic beverages, internal

control and accounting and collection of state alcoholic beverage taxes.

control and accounting.

As the sale of alcoholic

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presently anticipated.

Coronavirus Pandemic

In March 2020, a novel

strain of coronavirus was declared a global pandemic and a National Public Health Emergency.

The novel coronavirus pandemic and

related “shelter-in-place”

orders and other governmental mandates relating thereto (collectively, “COVID-19”)

adversely affected and will, in all likelihood continue to adversely affect, our restaurant operations and financial results for

the foreseeable future.

Due to COVID-19, from mid-March 2020 through mid-May 2020, we ceased all dining and bar services at all

of our restaurants, limiting service to take-out and delivery only of food, and implemented reduced hours at our retail package

liquor stores.

From mid-May 2020 through the beginning of July 2020, there was a gradual elimination of restrictions on our restaurant

operations, permitting us to, among other things, provide dining for outdoor seating patrons with appropriate social distancing

and provide dining for indoor patrons at up to 50% capacity (depending on the location of the restaurant), but with no bar service

and increased operating hours at our package liquor stores.

From the beginning of July 2020 through the beginning of September

2020, we ceased dine-in service at all of our Miami-Dade County, Florida restaurants, (two Company-owned and six limited partnership

owned restaurants).

Since the beginning of September 2020, we have been offering both food and bar options at all of our restaurants,

including those located in Miami-Dade County, Florida, with appropriate social distancing and dine-in

service at up to 100% capacity, including outdoor seating.

Due to COVID-19, we implemented

(i) certain cost cutting measures including material layoffs at our restaurants and reduced corporate personnel salaries;

a number of changes to our operations such as the establishment of an in-house delivery service and an adjustment to our traditional

staffing model to meet customer demand.

We have been in regular contact with our suppliers and while to date we have not experienced

significant disruptions in our supply chain, we could see future disruptions should the impacts of COVID-19 extend for a considerable

amount of time.

To support our employees, we have implemented work from home support, increased sanitization of high touch, high

traffic areas in our restaurants, retail package liquor stores and corporate offices, provided personal protective equipment for

our employees and increased the frequency of personal hygiene practices.

From March 29, 2020 through May 9, 2020, the salaries

of all our non-executive corporate office personnel were reduced by 20%, the base salaries of our Chief Operating Officer and Chief

Financial Officer were each reduced by 50% and our Chief Executive Officer waived his base salary, representing salary savings

of approximately $135,000 during this period.

Our employee headcount as of fiscal year end 2020 was 1,804 persons reduced from

1,870 persons as of our fiscal year end 2019.

In addition and also due to COVID-19, we did not make any

quarterly distributions to our limited partners for the quarter ended March 31, 2020.

For each of the quarters ended June 30, 2020

and September 30, 2020, we made quarterly distributions to our limited partners equal to one-half (½) of the amounts that

would have been distributed for the quarter ended March 31, 2020.

During the third quarter

of fiscal year end 2020, the United States government passed a $2.0 trillion Coronavirus Aid, Relief and Economic Security Act

(“CARES Act”) designed primarily to help keep businesses running during and after the COVID-19 pandemic.

Act included provisions for certain deductions and tax credits, filing deadline extensions, filing payment deadlines and making

available certain grant money to assist businesses.

This CARES ACT allowed us to take advantage of credits, deferments, and deductions,

and PPP Loans (described below) during the third quarter of our fiscal year 2020.

As a result, during the third and fourth quarter

of 2020, we reversed certain of our cost cutting measures, including (i) reinstating employees laid off at our restaurants in anticipation

of resuming dine-in service, (ii) restoring corporate personnel and executive salaries and (iii) paying prior salary reductions.

During the third quarter

of our fiscal year 2020, we, certain of the entities owning the limited partnership stores (the “LP’s”), franchised

stores (the “Franchisees”) as well as the store we manage but do not own (the “Managed Store”), (collectively,

the “Borrowers”), applied for and received loans from an unrelated third party lender pursuant to the Paycheck Protection

Program (the “PPP”) under the Coronavirus Aid, Relief and Economic Security Act (the “CARES Act”) enacted

March 27, 2020, in the aggregate principal amount of approximately $13.1 million, (the “PPP Loans”), of which approximately:

(i) $5.9 million was loaned to us;

(ii) $4.1 million was loaned to 8 of the LP’s;

(iii) $2.6 million was loaned to 5 of the

and (iv) $0.5 million was loaned to the Managed Store.

The PPP Loans to the Franchisees and the Managed Store are

not included in our consolidated financial statements.

Due to our receipt of the PPP Loans, we reversed certain cost cutting measures,

including reinstating employees laid off at our restaurants in anticipation of resuming dine-in service and restoring corporate

personnel salaries.

The PPP Loans,

which are in the form of Notes issued by each of the Borrowers, mature two years from the date of funding (dates ranging from

May 5, 2022 to May 11, 2022) and bear interest at a rate of 1.00% per annum, payable monthly commencing approximately six

months from the date of issuance of the Notes (issuance dates ranging from April 30, 2020 to May 6, 2020).

The Notes may be

prepaid by the applicable Borrower at any time prior to maturity with no prepayment penalties.

Proceeds from the PPP Loans

have been used and are available to the respective Borrower to fund designated expenses, including certain payroll costs,

group health care benefits and other permitted expenses, including rent and interest on mortgages and other debt obligations

incurred before February 15, 2020.

Under the terms of the PPP, up to the entire amount of principal and accrued interest may

be forgiven to the extent the proceeds of the PPP Loans are used for qualifying expenses as described in the CARES Act and

applicable implementing guidance issued by the U.S.

Small Business Administration under the PPP.

No assurance can be given

that the Borrowers will obtain forgiveness of the PPP Loans in whole or in part.

With respect to any portion

of any of the PPP Loans that is not forgiven under the terms of the PPP, such amounts will be subject to customary provisions for

a loan of this type, including customary events of default relating to, among other things, payment defaults, breaches of the provisions

of the applicable PPP Note and cross-defaults on any other loan with the Lender or other creditors.

We do not believe COVID-19

has had a material adverse effect on our access to supplies or labor, although there can be no assurance that there will not be

a significant adverse impact on our supply chain or access to labor in the future.

We are actively monitoring our food suppliers

to assess how they are managing their operations to mitigate supply flow and food safety risks.

To ensure we mitigate potential

supply availability risk, we are building additional inventory back stock levels when appropriate and we have also identified alternative

supply sources in key product categories including but not limited to food, sanitation and safety supplies.

Prior to obtaining the

PPP Loans, we were in compliance with the financial covenants contained in our loans with our unrelated third party institutional

lender (the “Institutional Lender”) under which as of October 3, 2020, we owe in the aggregate, approximately $12,209,000

(the “Institutional Loans”).

We determined that as of the end of the third quarter of our fiscal year 2020, we were

not in compliance with our financial covenants contained in the Institutional Loans related to the Rent Adjusted Funded Debt to

EBITDA Ratio because our consolidated debt during the third quarter of our fiscal year 2020 increased due to our repayment obligations

under the PPP Loans (the “Covenant Breach’).

Pursuant to the terms of the Institutional Loans, the Covenant Breach,

grants the Institutional Lender the right to exercise certain remedies under the Institutional Loans, including the right to accelerate

the indebtedness owed by us to the Institutional Lender thereunder.

On August 10, 2020, we received a written waiver of the Covenant

Breach from the Institutional Lender, which, among other things, waives the Covenant Breach through June 30, 2021.

As of October

3, 2020, we are in compliance with the financial covenants contained in our loans with our Institutional Lender.

There can be no assurances

that we will be in compliance with our financial covenants thereafter due to, among other things, that our results of operations

will likely continue to be materially impacted by the COVID-19 pandemic.

Absent a waiver, failure to be in compliance with our

financial covenants would constitute a default under the Institutional Loans with our Institutional Lender when reported.

a default, if not cured or waived, would allow the Institutional Lender to accelerate the maturity of the indebtedness we owe under

the Institutional Loans, making it due and payable at the time.

If maturity of the Institutional Loans were accelerated, it would

have a material adverse impact on our consolidated financial statements and results of operations.

General Liability Insurance

We have general liability

insurance which incorporates a semi-self-insured plan under which we assume the full risk of the first $50,000 of exposure per

occurrence, while the limited partnerships assume the full risk of the first $10,000 of exposure per occurrence.

Our insurance

carrier is responsible for $1,000,000 coverage per occurrence above our self-insured deductible, up to a maximum aggregate of $2,000,000

During our fiscal year 2019 we were able to purchase excess liability insurance at a reasonable premium, whereby our

excess insurance carrier is responsible for $6,000,000 coverage above our primary general liability insurance coverage.

exception of one (1) limited partnership which has higher general liability insurance coverage to comply with the terms of its

lease for the business premises, we are un-insured against liability claims in excess of $7,000,000 per occurrence and in the aggregate.

We are in discussions to secure general liability and excess liability insurance for the period commencing after the expiration

of the current policies on December 30, 2019.

We have general

liability insurance which incorporates a deductible of $10,000 per occurrence for both us and the limited partnerships.

insurance carrier is responsible for $1,000,000 coverage per occurrence above our deductible, up to a maximum aggregate of

$2,000,000 per year.

During our fiscal year 2020, we were able to purchase excess liability insurance at a reasonable

premium, whereby our excess insurance carrier is responsible for $10,000,000 coverage above our primary general liability

insurance coverage.

We are uninsured against liability claims in excess of $11,000,000 per occurrence and in the aggregate.

Subsequent to the end of our fiscal year 2020, we secured general liability and excess liability insurance for the period

commencing after the expiration of the current policies on December 30, 2020.

Our general policy is to

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and unreasonable claims.

We have established a group of defense attorneys which we use in conjunction with this program.

our current liability insurance policy, any expense incurred by us in defending a claim, including adjusters and attorney's fees,

are a part of our $50,000 or $10,000, as applicable, self-insured retentions.

Under our current liability insurance policy, certain expenses incurred in defending a claim, including

attorney's fees, are a part of our $10,000 deductible.

In accordance with accounting

guidance, we accrue for any self-insured liability by recognizing costs when it is probable that a covered liability has been incurred

and the cost can be reasonably estimated.

Accordingly, our annual self-insurance costs may be subject to adjustment from previous

estimates as facts and circumstances change.

Our self-insured accruals are included in the accompanying consolidated balance sheets

in the caption "Accounts payable and accrued expenses".

A significant unfavorable judgment or settlement against us in

excess of our liability insurance coverage could have a materially adverse effect on the Company.

guidance, we accrue for any liability by recognizing costs when it is probable that a covered liability has been incurred and the

cost can be reasonably estimated.

Accordingly, our annual insurance costs may be subject to adjustment from previous estimates

as facts and circumstances change.

Our accruals are included in the accompanying consolidated balance sheets in the caption "Accounts

payable and accrued expenses".

A significant unfavorable judgment or settlement against us in excess of our liability insurance

coverage could have a materially adverse effect on the Company.

Property Insurance;

Windstorm Insurance;

For the policy year beginning

December 30, 2018, our property insurance is a one (1) year policy with an unaffiliated third party insurance carrier, including

coverage for properties leased by us and our consolidated limited partnerships, and provides for full insurance coverage for property

losses, including those caused by windstorm, such as a hurricane.

We are in discussions to secure property insurance for the period

commencing after the expiration of the current policy on December 30, 2019.

For property losses caused by windstorm, the property

insurance has a fixed deductible of $100,000, plus 5% of all insured losses, per occurrence.

For all other property losses, the

property insurance has deductibles of $10,000 per location, per occurrence.

The one (1) year property insurance premium is in the

amount of $506,000, of which $385,000 is financed through an unaffiliated third party lender.

The finance agreement provides that

we are obligated to repay the amount financed, together with interest at the rate of 3.85% per annum, over 10 months, with monthly

payments of principal and interest, each in the amount of approximately $42,000.

The finance agreement is secured by a security

interest in the insurance policy, all unearned premium, return premium, dividend payments and loss payments thereof.

For the policy year

beginning December 30, 2019, our property insurance is a one (1) year policy with an unaffiliated third party insurance

carrier, including coverage for properties leased by us and our consolidated limited partnerships, and provides for full

insurance coverage for property losses, including those caused by windstorm, such as a hurricane.

For property losses caused

by windstorm, the property insurance has a fixed deductible of $100,000, plus 5% of all insured losses, per occurrence.

all other property losses, the property insurance has deductibles of $10,000 per location, per occurrence.

Subsequent to the

end of our fiscal year 2020, we secured property insurance for the period commencing after the expiration of the current

policy on December 30, 2020.

Competition and the Company's Market

57 unchanged sentences

offices in administrative capacities and 13 were employed in maintenance.

Of the remaining employees, 57 were employed in package

liquor stores and 1,752 in restaurants.

Of the remaining employees, 65 were employed in our package

liquor stores and 1,675 in our restaurants.

None of our employees are

2 unchanged sentences

Executive Officers

Positions and Offices

Positions and Offices Currently Held

Office or Position

Currently Held

Chairman of the Board

of Directors, Chief

Executive Officer and

Chief Operating Officer

and Executive Vice

Chief Financial Officer,

General Counsel and

Chairman of the Board of Directors, Chief Executive Officer

and President

Chief Operating Officer and Executive Vice President

Chief Financial Officer, General Counsel and Secretary

Christopher O’Neil

Vice President of Package

(1) Chairman of the Board of Directors, Chief Executive Officer since 2005;

Vice President of Package Operations

----------------

(1) Chairman of the Board of Directors, Chief Executive Officer

President since 2002.

1 unchanged sentence

Secretary since 1995;

and General Counsel since 1982.

General Counsel since 1982.

Flanigan’s 401(k) Plan

4 unchanged sentences

to the plan but may make discretionary profit sharing and/or matching contributions.

During our fiscal years ended September 28,

2019 and September 29, 2018, the Board of Directors approved discretionary matching contributions totaling $74,000 and $57,000,

respectively.

During our fiscal years ended October 3, 2020

and September 28, 2019, the Board of Directors approved discretionary matching contributions totaling $81,000 and $74,000, respectively.

Environmental Matters

7 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business