What changed in this filing

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Item 2. Properties

2021-01-15 compared with 2019-12-20 · 278 added, 257 removed, 158 unchanged (77% of the section changed)

1 unchanged sentence

primarily on leased property with the exception of the following:

(i) a 10,000 square foot

stand-alone building located in Fort Lauderdale, Florida that we purchased in December, 1999, which since April, 2001 has housed

our corporate headquarters;

(ii) a 4,600 square foot

stand-alone building located in Hallandale, Florida that we purchased in July, 2006 and which since September, 1968 has housed

our Hallandale, Florida Company-owned combination restaurant and package liquor store (Store #31);

(iii) a 4,120 square foot

stand-alone building in Hollywood, Florida we constructed in November, 2003, upon real property we acquired in September, 2001

pursuant to a 25 year ground lease interest, (a portion of this building is leased to an unaffiliated third party), and which since

November, 2003 has housed our Hollywood, Florida Company-owned package liquor store (Store #4);

(iv) a 4,500 square foot

stand-alone building located in Hollywood, Florida that we purchased in October, 2009 and which housed our Hollywood, Florida Company-owned

combination restaurant and package liquor store (Store #19) from March, 1972 until it was destroyed by fire on October 2, 2018

and the vacant parcel of real property adjacent thereto which we purchased in February, 2015;

(v) a 4,600 square foot

stand-alone building located in Fort Lauderdale, Florida that we purchased in August, 2010 and which since December, 1968 has housed

our Fort Lauderdale, Florida Company-owned restaurant (Store #22);

(vi) a 5,100 square foot

stand-alone building in North Miami, Florida that we purchased in November, 2010;

the two parcels of real property adjacent thereto

which we purchased in December, 2012, one of which is contiguous to the real property and which we previously leased for non-exclusive

parking and the vacant parcel of real property adjacent to the two parcels of real property which we purchased in March, 2017.

The stand alone building housed our North Miami, Florida Company-owned combination restaurant and package liquor store, (Store

#20), from July, 1968 until June, 2017 when the package liquor store was re-located to a new building we constructed on the adjacent

(vii) a 23,678 square foot

two building shopping center in Miami, Florida that we purchased in November, 2010:

(A) one stand-alone building, approximately

18,828 square feet, (i) houses our recently opened (October, 2019) new package liquor store and (ii) is otherwise leased to ten

unaffiliated third party retailers;

and (B) the second stand-alone building, approximately 4,850 square feet, has housed our Kendall,

Florida based restaurant since April 4, 2000, which is owned by our affiliated limited partnership (Store #70);

(viii) a 6,400 square

foot building in Fort Lauderdale, Florida that we purchased in February, 2014, 4,000 square feet of which has been leased to a

related franchisee (Store #15) since April 1, 1997 and the balance (2,400 square feet) of which we use as storage.

2018 we purchased the real property and quadraplex adjacent thereto to insure adequate parking for the franchised restaurant in

the future, if needed;

a 6,000 square foot stand-alone building in Fort Lauderdale, Florida and the vacant real property diagonally adjacent that we

purchased in October, 2015, which we use as office and warehouse space, covered parking for our food truck and as a storage

(i) a 10,000 square foot stand-alone building located in Fort Lauderdale, Florida that we purchased

in December, 1999, which since April 2001 has housed our corporate headquarters;

(ii) a 4,600 square foot stand-alone building located in Hallandale, Florida that we purchased in July

2006 and which since September 1968 has housed our Hallandale, Florida Company-owned combination restaurant and package liquor

store (Store #31);

(iii) a 4,120 square foot stand-alone building in Hollywood, Florida we constructed in November 2003,

upon real property we acquired in September 2001 pursuant to a 25 year ground lease interest, (a portion of this building is leased

to an unaffiliated third party), and which since November 2003 has housed our Hollywood, Florida Company-owned package liquor store

(iv) a 4,500 square foot stand-alone building located in Hollywood, Florida that we purchased in October

2009 and which housed our Hollywood, Florida Company-owned combination restaurant and package liquor store (Store #19) from March,

1972 until it was destroyed by fire on October 2, 2018 and the vacant parcel of real property adjacent thereto which we purchased

in February 2015;

(v) a 4,600 square foot stand-alone building located in Fort Lauderdale, Florida that we purchased

in August 2010 and which since December, 1968 has housed our Fort Lauderdale, Florida Company-owned restaurant (Store #22);

(vi) a 5,100 square foot stand-alone building in North Miami, Florida that we purchased in November

the two parcels of real property adjacent thereto which we purchased in December 2012, one of which is contiguous to the

real property and which we previously leased for non-exclusive parking and the vacant parcel of real property adjacent to the two

parcels of real property which we purchased in March 2017.

The stand-alone building housed our North Miami, Florida Company-owned

combination restaurant and package liquor store, (Store #20), from July, 1968 until June 2017 when the package liquor store was

re-located to a new building we constructed on the adjacent property;

(vii) a 23,678 square foot two building shopping center in Miami, Florida that we purchased in November

(A) one stand-alone building, approximately 18,828 square feet, (i) houses our recently opened (October 2019) new package

liquor store and (ii) is otherwise leased to ten unaffiliated third party retailers;

and (B) the second stand-alone building, approximately

4,850 square feet, has housed our Kendall, Florida based restaurant since April 4, 2000, which is owned by our affiliated limited

partnership (Store #70);

(viii) a 6,400 square foot building in Fort Lauderdale, Florida that we purchased in February 2014, 4,000

square feet of which has been leased to a related franchisee (Store #15) since April 1, 1997 and the balance (2,400 square feet)

of which we use as storage.

In August 2018 we purchased the real property and quadraplex adjacent thereto to insure adequate parking

for the franchised restaurant in the future, if needed;

(ix) a 6,000 square foot stand-alone building in Fort Lauderdale, Florida and the vacant real property

diagonally adjacent that we purchased in October 2015, which we use as office and warehouse space, covered parking for our food

truck and as a storage yard;

(x) a 4,600 square foot stand-alone building located in North Lauderdale, Florida that we

purchased subsequent to the end of our fiscal year 2020 and which since April 1971 has housed our Company owned combination

restaurant and package liquor store (Store #40).

All of our units require

3 unchanged sentences

for discussion of the amounts spent in fiscal year 2020.

The following table summarizes

information related to the properties upon which our operations are conducted:

The following table summarizes information related

to the properties upon which our operations are conducted:

Name and Location

Big Daddy's Liquors #4

3/1/02 to 2/28/27

Flanigan's Enterprises

and Options to

Flanigan's Enterprises Inc.

7003 Taft Street

Hollywood, FL

Big Daddy's Liquors #7

Hollywood, Florida

3/1/02 to 2/28/27

Flanigan's Enterprises,

and Option to

Options to 2/28/47

Big Daddy's Liquors #7

Flanigan's Enterprises, Inc.

Hialeah, Florida

11/1/00 to 10/31/25

Flanigan's Enterprises,

and Option to

Big Daddy's Liquors #8

Flanigan's Enterprises, Inc.

959 State Road 84

Fort Lauderdale, FL

Flanigan’s Seafood

Fort Lauderdale, Florida

5/1/99 to 4/30/24

Bar and Grill #9

and Options to

Option to 4/30/29

Flanigan’s Seafood Bar and

Flanigan’s Enterprises, Inc.

Flanigan's Legends

Hialeah, Florida

1/1/10 to 12/31/24

Seafood Bar and Grill #11

11 Corporation (1)

Flanigan's Legends Seafood Bar and Grill #11

11 Corporation, Inc.

330 Southern Blvd.

Palm Beach, FL

Palm Beach, Florida

1/4/00 to 1/3/25

Name and Location

Flanigan's Seafood

Bar and Grill #12

Flanigan's Seafood Bar and Grill #12

Flanigan’s Enterprises, Inc.

2405 Tenth Ave.

Lake Worth, FL

Flanigan's Seafood

Lake Worth, Florida

11/16/92 to 11/15/23

Bar and Grill #14

Options to 11/15/38

Flanigan's Seafood Bar and Grill #14

Big Daddy's #14, Inc.

2041 NE Second St.

Deerfield Beach, FL

Flanigan’s Seafood

Deerfield Beach, Florida

6/1/79 to 6/1/24

Bar and Grill #15

Options to 8/31/36

and Options to

Flanigan’s Seafood Bar and Grill #15

CIC Investors #15 Ltd.

Commercial Blvd.

Lauderdale, FL

Flanigan's Seafood

Lauderdale, Florida

1/1/09 to 8/31/21

Bar and Grill #18

Options to 8/31/36

Flanigan’s Seafood Bar and

Twenty Seven Birds Corp.

2721 Bird Avenue

2721 BirdAvenue

Miami, Florida

Big Daddy's Liquors #18

2/15/72 to 12/31/20

Twenty Seven Birds Corp.

Options to 12/31/35

Flanigan’s Seafood

Company-Owned

Bar and Grill #19

Miami, Florida

Flanigan’s Seafood Bar and

Grill #19 (8)

Flanigan’s Enterprises, Inc.

University Dr.

Hollywood, FL

Flanigan's Seafood

Hollywood, Florida

Company-Owned

Bar and Grill #20

Flanigan's Seafood Bar and Grill #20

Flanigan's Enterprises, Inc.

13205 Biscayne Blvd.

North Miami, FL

Big Daddy’s Liquors #20

North Miami, Florida

Company-Owned

Big Daddy’s Liquors #20

Flanigan's Enterprises, Inc.

13185 Biscayne Blvd.

North Miami, FL

Name and Location

Flanigan's Seafood

North Miami, Florida

Company-Owned

Bar and Grill #22

Flanigan’s Enterprises, Inc.

Lauderdale, FL

Flanigan's Seafood

Name and Location

Flanigan's Seafood Bar and Grill #22

Flanigan's Enterprises, Inc.

Lauderdale, Florida

Company-Owned

Bar and Grill #31

Flanigan's Seafood Bar and Grill #31

Flanigan's Enterprises, Inc.

Federal Highway

Hallandale, FL

Flanigan's Seafood Bar

10/1/10 to 6/30/30

and Grill #33

Hallandale, Florida

Company-Owned

Flanigan's Seafood Bar and Grill #33

Flanigan’s Enterprises, Inc.

Federal Highway

Boca Raton, FL

Big Daddy's Liquors #34

Boca Raton, Florida

10/1/10 to 6/30/30

Big Daddy's Liquors #34

Flanigan's Enterprises, Inc.

Options to 5/28/37

9494 Harding Ave.

Flanigan's Seafood

Surfside, Florida

5/29/97 to 5/28/22

Bar and Grill #40

Option to Purchase

Options to 5/28/37

Flanigan's Seafood Bar and Grill #40

Flanigan's Enterprises, Inc.

on 12/31/2020

Lauderdale, FL

Lauderdale, Florida

Company-Owned

Piranha Pat's #43

12/1/72 to 11/30/22

BD 43 Corporation (1) (2)

Atlantic Blvd.

Pompano Beach, FL

Pompano Beach, Florida

Big Daddy’s Liquors #45

Flanigan’s Enterprises, Inc.

Miami, Florida

7/1/19 to 6/30/24

Flanigan’s Enterprises,

Options to 6/30/34

Big Daddy's Liquors #47

12/21/68 to 1/1/30

Flanigan's Enterprises,

Options to 1/1/50

Flanigan's Enterprises, Inc.

8600 Biscayne Blvd.

Flanigan’s Seafood

6/01/91 to 7/31/26

Bar and Grill #13,

Miami, Florida

12/21/68 to 1/1/30 Options to 1/1/50

Flanigan’s Seafood Bar and Grill #13

CIC Investors #13, Ltd.

Dixie Highway

Name and Location

Pinecrest, FL

Flanigan’s Seafood

Pinecrest, Florida

Limited Partnership

06/01/91 to 7/31/26

Bar and Grill #50,

Options to 10/23/31

Name and Location

Flanigan’s Seafood Bar and Grill #50

CIC Investors #50, Ltd.

17185 Pines Boulevard

Pembroke Pines, FL

Flanigan’s Seafood

1/5/07 to 12/31/21

Bar and Grill #55

Options to 12/31/31

Pembroke Pines, Florida

Limited Partnership

10/24/06 to 10/23/21 and Options to 10/23/31

Flanigan’s Seafood Bar and Grill #55

CIC Investors #55, Ltd.

1 unchanged sentence

Davie, Florida

Flanigan's Seafood

8/1/97 to 12/31/21

Bar and Grill #60

Flanigan’s Seafood Bar and Grill #60

CIC Investors #60 Ltd.

9516 Harding Avenue

Flanigan’s Seafood

Surfside, Florida

Limited Partnership

8/1/97 to 12/31/21

Bar and Grill #65

Option to 3/31/25

Flanigan’s Seafood Bar and Grill #65

CIC Investors #65, Ltd.

2335 State Road 7, Suite 100

Wellington, FL

Flanigan's Seafood

4/1/00 to 3/31/25

Bar and Grill #70

Options to 3/31/30

Wellington, Florida

Flanigan's Seafood Bar and Grill #70

CIC Investors #70 Ltd.

12790 SW 88 St.

Flanigan’s Seafood

Miami, Florida

4/1/00 to 3/31/25

Bar and Grill #75 (9)

Options to 4/30/31

Option to 3/31/30

Flanigan’s Seafood Bar and Grill #75

Flanigan’s Enterprises, Inc.

Federal Highway

Flanigan's Seafood

Stuart, Florida

5/1/10 to 4/30/26

Bar and Grill #80

Options to 12/14/39

Option to 4/30/31

Flanigan's Seafood Bar and Grill #80

CIC Investors #80 Ltd.

Flanigan’s Seafood

Miami, Florida

6/15/01 to 12/14/24

Bar and Grill #85 (12)

Options to 12/14/39

Flanigan's Seafood Bar and Grill #85 (9)

CIC Investors #85 Ltd.

Option to Purchase

Sunrise Blvd.

until 2/28/2021

Sunrise, Florida

Name and Location

Flanigan's Seafood

3/1/19 to 2/28/29

Bar and Grill #90

Option to 2/28/44

Option to Purchase until 2/28/21

Flanigan's Seafood Bar and Grill #90

CIC Investors #90 Ltd.

Flanigan's Seafood

Miami, Florida

4/1/11 to 3/31/26

Bar and Grill #95 (10)

Options to 9/30/32

Option to 3/31/31

Name and Location

Flanigan's Seafood Bar and Grill #95

Flanigan’s Enterprises, Inc.

2460 Weston Road

Flanigan’s Calusa

Company-Owned

Center, LLC (6)

Weston, Florida

10/1/17 to 9/30/22

Options to 9/30/32

Flanigan’s Calusa Center, LLC (6)

12750 –

Miami, Florida

Company-owned

shopping center

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

(1) Franchised by Company.

15 unchanged sentences

Calusa Center, LLC, closed on the purchase of a two building shopping center in Miami, Florida, which consists of (i) one stand-alone

building which is leased to ten unaffiliated third parties and houses our recently opened (October, 2019) package liquor store

and (ii) a second stand-alone building where our limited partnership owned restaurant located at 12790 SW 88 th Street,

Miami, Florida, (Store #70), operates.

building which is leased to ten unaffiliated third parties and houses our recently opened (October 2019) package liquor store (approximately

3,250 square feet) and (ii) a second stand-alone building where our limited partnership owned restaurant located at 12790 SW 88 th

Street, Miami, Florida, (Store #70), operates.

(7) During the second quarter of our fiscal year 2014, we closed on the purchase of the building in

2 unchanged sentences

Florida, (Store #15).

(8) During the fourth quarter of our fiscal year 2015, our lease for this location expired.

the term of the lease for five (5) years, with one (1) five (5) year renewal option.

(9) During the third quarter of our fiscal year 2016, our lease for this location expired.

the term of the lease for five (5) years, with two (2) five (5) year renewal options.

(10) During the second quarter of our fiscal year 2017, we renewed the term of the lease for this location

for five (5) years with two (2) five (5) year renewal options.

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

12 unchanged sentences

purchase was retained by the Company when the lease was assigned to the limited partnership.

(13) Subsequent to the end of our fiscal year 2019, this new package liquor store, located in the Flanigan’s

Calusa Shopping Center, opened for business.

(10) Subsequent to the end of our fiscal 2020, we purchased the 4,600 square foot stand-alone

building located at 5450 N.

State Road 7, North Lauderdale, Florida and which since April, 1971 has housed our Company-owned

combination restaurant and package liquor store (Store #40).

Casualty Loss

4 unchanged sentences

Due to the damage caused by the fire, we determined that Store #19 should

be demolished and rebuilt and as a result, the package liquor store and restaurant were closed for our fiscal year 2019.

insurance coverage of $1,975,000, in the aggregate, which our insurance carrier agreed to pay.

be demolished and rebuilt and as a result, the package liquor store and restaurant were closed for our fiscal years 2020 and 2019.

We had insurance coverage of $1,975,000, in the aggregate, which our insurance carrier paid.

We sustained a loss of $1,373,000

1 unchanged sentence

We had a gain of $775,000 on our business interruption coverage, which when netted against our loss of $173,000 on

our building and business personal property produced a gain of $602,000.

During the first quarter of our fiscal year 2019, we received

an advance of $600,000 against our insurance recovery and during the second quarter of our fiscal year 2019, we received the balance

of our insurance recovery, less only $132,000 as depreciation against our business personal property until such time as it is replaced.

Recent Purchase of Real Property;

Option to Lease Agreement

our building and business personal property produced a gain of $602,000 during our fiscal year 2019.

Purchase of Real Property;

Lease Agreement

Pompano Beach, Florida

5 unchanged sentences

“Adjacent Property”).

As a condition to closing on the Property, we executed an Option to Lease Agreement for the Adjacent

Property, to lease the Adjacent Property for a 50 year term commencing either in November, 2019 or if the current tenant exercises

a one time three year renewal option, November, 2022.

We plan to renovate the building on the Adjacent Property for operation as

a “Flanigan’s Seafood Bar and Grill”

restaurant and use the Property as parking.

To fund the cash at closing,

we used cash on hand.

We plan to raise funds to renovate this new restaurant location using our limited partnership ownership model.

At closing, we executed an Option to Lease Agreement to lease the Adjacent Property for a 50-year

term commencing in November 2022.

We will either (i) sublease the building on the Adjacent Property to a related party for operation

as a “Flanigan’s Seafood Bar and Grill”

restaurant as a franchise and use the Property as parking;

or (ii) renovate

the building on the Adjacent Property for operation as a “Flanigan’s Seafood Bar and Grill”

restaurant and use

the Property as parking.

If we renovate this new restaurant location on the Adjacent Property, we plan to raise funds using our

limited partnership ownership model.

Execution of Leases for New Locations

Sunrise, Florida (“Flanigan’s

Seafood Bar and Grill”)

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.

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 an amount to be

determined, 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.

Any amounts we advance to the limited partnership will be applied as a credit to limited partnership equity in the limited partnership

we may acquire (which equity shall be purchased at the same price and upon the same terms as other equity investors).

not acquire equity in the limited partnership for at least $250,000, any excess amounts advanced by us will be reimbursed to us

by the limited partnership without interest.

Through September 28, 2019, we have advanced $337,000 to the limited partnership.

Miramar, Florida (“Flanigan’s

1 unchanged sentence

During fourth quarter

of our fiscal year 2019, we entered into a Lease Agreement for a non-affiliated restaurant location in a shopping center in Miramar,

The shopping center is currently in the developmental stage and the Lease Agreement is contingent upon our approval of

the final site plan.

We plan to assign the Lease Agreement to a limited partnership in which (i) we will be the sole general partner;

and (ii) a wholly owned subsidiary will be the 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 an amount to be determined, 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.

Any amounts we advance to the limited partnership will be applied as a credit to limited partnership

equity in the limited partnership we may acquire (which equity shall be purchased at the same price and upon the same terms as

other equity investors).

If we do not acquire equity in the limited partnership for at least $250,000, any excess amounts advanced

by us will be reimbursed to us by the limited partnership without interest.

Through September 28, 2019, we have no advances to

the limited partnership.

of our fiscal year 2019, we entered into a Lease Agreement with a non-affiliated third party for the lease of a restaurant location

in a shopping center in Miramar, Florida.

The shopping center is currently in the developmental stage and the Lease Agreement

is still contingent upon our receipt of delivery of the leased premises by August 28, 2021.

We plan to assign the Lease Agreement

to a limited partnership in which (i) we will be the sole general partner;

and (ii) a wholly owned subsidiary will be the limited

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 an amount to be determined, 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.

we advance to the limited partnership will be applied as a credit to limited partnership equity in the limited partnership we

may acquire (which equity shall be purchased at the same price and upon the same terms as other equity investors).

acquire equity in the limited partnership for at least $250,000, any excess amounts advanced by us will be reimbursed to us by

the limited partnership without interest.

Through October 3, 2020, we have no advances to the limited partnership.

Miramar, Florida (“Big Daddy’s

1 unchanged sentence

During the fourth quarter

of our fiscal year 2019, we entered into a Lease Agreement for a non-affiliated package liquor store location in a shopping center

in Miramar, Florida, directly adjacent to the new non-affiliated restaurant location.

The shopping center is currently in the developmental

stage and the Lease Agreement is contingent upon our approval of the final site plan.

The new package liquor store location will

be Company owned.

Flanigan’s Fish Company, LLC

During the fourth quarter

of our fiscal year 2018, we (as a 51% member control person) and a third party unaffiliated with us, experienced in the business

of importing fresh fish into the United States (as a 49% member), formed Flanigan’s Fish Company, LLC, a Florida limited

liability company (“FFC”).

The current purpose of FFC is to acquire and sell only to our restaurants imported fresh

fish at competitive prices to what we are currently paying outside fresh fish purveyors.

Commencing with the third quarter of our

fiscal year 2019, FFC began to supply fish to our restaurants and as of September 28, 2019, FFC supplies certain of the fish to

thirteen (13) of our restaurants.

Since we hold the controlling interest of FFC, the balance sheet and operating results of this

entity are consolidated into the accompanying financial statements of the Company.

All intercompany transactions are eliminated

on consolidation.

Sales and purchases of fish are recognized in restaurant food sales and restaurant and lounges (cost of merchandise

sold), respectively, in the consolidated statements of income at the time of sale to the restaurant.

In addition, the 49% of FFC

owned by the unrelated third party is recognized as a noncontrolling interest in our consolidated financial statements.

Subsequent Events

Lease for Existing Location

Boca Raton, Florida

Subsequent to the end of

our fiscal year 2019, the lease with an unrelated third party for the restaurant we own located at 45 S.

Federal Highway, Boca

Raton, Florida (Store #33) was extended for ten (10) years through June 30, 2030.

The extended lease is on the same terms and conditions,

including fixed annual rental increases and continued percentage rent.

Opening of New Package Liquor Store

Subsequent to the end of

our fiscal year 2019, we opened our new package liquor store in our Flanigan’s Calusa Shopping Center in Miami, Florida (Store

of our fiscal year 2019, we entered into a Lease Agreement with a non-affiliated third party for the lease of a package liquor

store location in a shopping center in Miramar, Florida, directly adjacent to the new non-affiliated restaurant location described

The shopping center is currently in the developmental stage and the Lease Agreement is still contingent upon our receipt

of delivery of the leased premises by August 28, 2021.

The new package liquor store location will be Company-owned.

Re-Financing of Existing Mortgage

Subsequent to the end of

our fiscal year 2019, our wholly owned subsidiary, Flanigan’s Calusa Center, LLC, re-financed its mortgage with our unrelated

During the first quarter

of our fiscal year 2019, our wholly owned subsidiary, Flanigan’s Calusa Center, LLC, re-financed its mortgage with our unrelated

third party lender, increasing the principal amount from $2.72 million to $7.21 million.

1 unchanged sentence

interest of our existing mortgage matured November 30, 2019.

The re-financed mortgage will earn interest at the fixed annual rate

of 3.86%, being amortized over twenty (20) years, with equal monthly payments of principal and interest each in the amount of $43,000

The re-financed mortgage earns interest at the fixed annual rate of

3.86%, is amortized over twenty (20) years, with equal monthly payments of principal and interest each in the amount of $43,000

and the entire principal balance and all accrued interest due in seven (7) years.

The funds we receive from the re-financing of

this mortgage (approximately $4.5 million) will be used as working capital.

The funds we received from the re-financing of

this mortgage (approximately $4.5 million) will be used for working capital.

SUBSEQUENT EVENTS

Menu Price Increases

Effective November 29,

2020 we increased menu prices for our bar offerings to target an increase to our bar revenues of approximately 1.83% annually and

effective December 6, 2020 we increased menu prices for our food offerings to target an increase to our food revenues of approximately

2.45% annually to offset higher food costs and higher overall expenses.

Prior to these increases, we previously raised menu prices

in the third quarter of our fiscal year 2019.

Exercise of Options to Purchase

North Lauderdale, Florida (“Flanigan’s

Seafood Bar and Grill”/”Big Daddy’s Liquors”)

On October 7, 2014, we

entered into an Amendment to Lease Agreement (the “Lease Amendment”) with a non-affiliated third party from whom we

rent approximately 4,600 square feet of commercial space located at 5450 N.

State Road 7, North Lauderdale, Florida where we operate

a combination “Flanigan’s Seafood Bar and Grill”

restaurant and “Big Daddy’s Liquors”

liquor store (Store #40).

The Lease Amendment extended the term of the Lease Agreement until December 31, 2020 and grants us the

option to purchase, (the “Option to Purchase”), the real property and improvements on December 31, 2020 for $1,200,000.

During the fourth quarter of our fiscal year 2020 we exercised the Option to Purchase and closed on the acquisition of

the property on December 31, 2020.

We paid all cash at closing.

Sunrise, Florida (“Flanigan’s

Seafood Bar and Grill”)

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 located at 14301 W.

Sunrise Boulevard, Sunrise, Florida where,

subject to certain conditions, we anticipate opening a new restaurant location.

The Sunrise Lease Agreement grants us an option

to purchase, (the “Option to Purchase”) the real property and improvements by February 28, 2021.

During the third quarter

of our fiscal year 2019, we assigned the Sunrise Lease Agreement, excluding the Option to Purchase, to a newly formed limited partnership.

Subsequent to the end of our fiscal year 2020, we exercised the Option to Purchase and anticipate closing during the second quarter

of our fiscal year 2021.

We intend to pay all cash at closing.

General Liability Insurance;

Excess Insurance

For the policy

year beginning December 30, 2020, we bound general liability insurance with an unrelated third party insurance carrier which incorporates

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

Our 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.

We were also able to bind 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.

Certain expenses incurred in defending a claim, including attorney's fees, are a part of our $10,000 deductible.

Property Insurance;

Windstorm Insurance;

For the policy year beginning

December 30, 2020, 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.

For all other property losses, the property

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

Financed Insurance Premiums

For the policy year

commencing December 30, 2020, we financed the premises on the following property, general liability, excess liability and

terrorist policies, totaling approximately $1.94 million, which property, general liability, excess liability and terrorist

insurance includes coverage for our franchises which are not included in our consolidated financial statements:

(i) For the policy year

beginning December 30, 2020, our general liability insurance, excluding limited partnerships, is a one (1) year policy with our

insurance carriers.

The one (1) year general liability insurance premium is in the amount of $340,000;

the policy year beginning December 30, 2020, our general liability insurance for our limited partnerships is a one (1) year policy

with our insurance carriers.

The one (1) year general liability insurance premium is in the amount of $426,000;

the policy year beginning December 30, 2020, our automobile insurance is a one (1) year policy.

The one (1) year automobile insurance

premium is in the amount of $93,000;

the policy year beginning December 30, 2020, our property insurance is a one (1) year policy.

The one (1) year property insurance

premium is in the amount of $627,000;

the policy year beginning December 30, 2020, our excess liability insurance is a one (1) year policy.

The one (1) year excess liability

insurance premium is in the amount of $443,000;

the policy year beginning December 30, 2020, our terrorist insurance is a one (1) year policy.

The one (1) year terrorist insurance

premium is in the amount of $5,000;

(vii) For the policy year beginning

December 30, 2020, our equipment breakdown insurance is a one (1) year policy.

The one (1) year equipment breakdown insurance premium

is in the amount of $6,000.

Of the $1,940,000

annual premium amounts, which includes coverage for our franchises which are not included in our consolidated financial statements,

we financed $1,776,000 through an unaffiliated third party lender.

The finance agreement obligates us to repay the amounts financed

together with interest at the rate of 2.45% per annum, over 11 months, with monthly payments of principal and interest, each in

the amount of $164,000.

The finance agreement is secured by a first priority security interest in all insurance policies, all unearned

premium, return premiums, dividend payments and loss payments thereof.

Except as otherwise provided

2 unchanged sentences

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What changed 10-K

Item 2. Properties