What changed in this filing

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Item 2. Properties

2023-12-29 compared with 2023-01-18 · 154 added, 147 removed, 283 unchanged (52% of the section changed)

1 unchanged sentence

on leased property with the exception of the following:

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;

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);

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);

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.

Subsequent to the fire, (i) we have constructed a 3,000 square foot stand-alone building on the vacant parcel of real property for the

operation of our Company-owned package liquor store (Store #19P), which opened for business subsequent to the end of our fiscal year 2022;

and (ii) are constructing a 4,500 square foot stand-alone building here for the operation of the Company-owned restaurant, (Store #19R),

which we anticipate will open for business subsequent to our fiscal year end 2023.

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);

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;

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);

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);

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.

Subsequent to the fire, (i) we have constructed a 3,000 square foot stand-alone building on the vacant parcel of real property for the operation of our Company-owned package liquor store (Store #19P), which opened for business during the first quarter of our fiscal year 2023;

and (ii) are constructing a 4,500 square foot stand-alone building here for the operation of the Company-owned restaurant, (Store #19R), which we anticipate will open for business during our fiscal year 2024;

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);

a 5,100 square foot stand-alone building in North Miami, Florida that we purchased in November 2010;

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;

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;

a 23,678 square foot two building shopping center in Miami, Florida that we purchased in November 2010:

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 limited partnership owned Kendall, Florida based restaurant since April 4, 2000, (Store #70);

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;

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

a 6,900 square foot stand-alone building in Sunrise, Florida, which we purchased in March, 2021 and houses

our limited partnership owned Sunrise, Florida based restaurant, (Store #85), which opened for business in March, 2022.

All of our units require periodic

refurbishing in order to remain competitive.

We have budgeted $650,000 for our refurbishing program for fiscal year 2023, although capital

expenditures of our refurbishing program for our fiscal year 2023 may be significantly higher.

See Item 7, "Liquidity and Capital Resources"

for discussion of the amounts spent in fiscal year 2022.

The following table summarizes information related

to the properties upon which our operations are conducted.

For all locations that include lease options, the lessor must extend the term

of the lease for a location if we exercise the lease option.

If there is no lease option or if we do not exercise the same, the lessor

is not required to extend the term of the lease upon expiration.

(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 limited partnership owned Kendall, Florida based restaurant since April 4, 2000, (Store #70);

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;

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;

a 6,900 square foot stand-alone building in Sunrise, Florida, which we purchased in March 2021 and houses our limited partnership owned Sunrise, Florida based restaurant, (Store #85), which opened for business in March 2022;

a 6,000 square foot commercial space in Miami,

Florida, which we purchased in April 2023 and in which we operate our package liquor store and warehouse (Store #47), through a sublease

agreement from a sale-leaseback arrangement in January 1974;

a 5,450 square foot three building shopping center in Hallandale Beach, Florida (adjacent to our combination package store and restaurant in Hallandale Beach, Florida (Store #31)), that we purchased in April 2023:

(A) one stand-alone building, approximately 1,450 square feet which is leased to two unaffiliated third party retailers;

(B) the second stand-alone building, approximately 1,500 square feet, which is leased to one unaffiliated third party retailer;

and (C) the third stand-alone building, approximately 2,500 square feet, which is leased to one unaffiliated third party retailer, (collectively Store #38).

All of our units require

periodic refurbishing in order to remain competitive.

We have budgeted $450,000 for our refurbishing program for fiscal year 2024,

although capital expenditures of our refurbishing program for our fiscal year 2024 may be significantly higher.

"Liquidity and Capital Resources" for discussion of the amounts spent in fiscal year 2023.

The following table summarizes

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

For all locations that include lease options, the

lessor must extend the term of the lease for a location if we exercise the lease option.

If there is no lease option or if we do not

exercise the same, the lessor is not required to extend the term of the lease upon expiration.

Name and Location

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5/1/99 to 4/30/29

Option to 4/30/29

Flanigan’s Seafood Bar and Grill #9

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Miami, Florida

2/15/72 to 12/31/25

Options to 12/31/35

Big Daddy's Liquors #18

1 unchanged sentence

Miami, Florida

2/15/72 to 12/31/25

Options to 12/31/35

Flanigan’s Wine & Liquors #19 (8)

71 unchanged sentences

Options to 1/1/50

(Sublease) Company-Owned

Flanigan’s Seafood Bar and Grill #13

69 unchanged sentences

shopping center

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

Flanigan’s Enterprises, Inc.

Hallandale Beach Blvd.

Hallandale Beach, Florida

Company-owned shopping center

Franchised by Company.

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We are no longer contingently liable on the lease.

In 1974, we sold and assigned the underlying ground lease to unaffiliated third parties and simultaneously

subleased it back.

We have re-purchased from the unaffiliated third parties and currently own 52% of the underlying ground lease, as well

as the sublease agreement.

In 1974, we sold and assigned the underlying ground lease to unaffiliated third parties and simultaneously subleased it back.

We have re-purchased from the unaffiliated third parties and currently own 52% of the underlying ground lease, as well as the sublease agreement.

As a result, we pay all rent due under the ground lease, but only 48% of the rent due under the sublease agreement.

Effective December 1, 1998, we purchased the Management Agreement to operate the franchised restaurant for

the franchisee.

Effective December 1, 1998, we purchased the Management Agreement to operate the franchised restaurant for the franchisee.

Ground lease executed by us on September 25, 2001.

We constructed a 4,120 square foot building, of which 1,978

square feet is used by us for the operation of a package liquor store and the other 2,142 square feet is subleased to an unaffiliated

third party as retail space.

We constructed a 4,120 square foot building, of which 1,978 square feet is used by us for the operation of a package liquor store and the other 2,142 square feet is subleased to an unaffiliated third party as retail space.

The package liquor store opened for business on November 17, 2003.

During the first quarter of our fiscal year 2012, our wholly owned subsidiary, Flanigan’s 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 (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.

During the second quarter of our fiscal year 2014, we closed on the purchase of the building in Fort Lauderdale,

Florida, which is leased to our franchisee owned restaurant located at 1479 E.

During the first quarter of our fiscal year 2012, our wholly owned subsidiary, Flanigan’s 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 (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.

During the second quarter of our fiscal year 2014, we closed on the purchase of the building in Fort Lauderdale, Florida, which is leased to our franchisee owned restaurant located at 1479 E.

Commercial Boulevard, Fort Lauderdale, Florida, (Store #15).

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

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 and was forced to close.

We determined that Store #19

should be demolished and rebuilt as separate buildings.

As a result, the package liquor store has been closed since our first quarter

year 2019, but re-opened for business subsequent to the end of our fiscal year 2022 in a newly constructed stand-alone building.

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

We determined that Store #19 should be demolished and rebuilt as separate buildings.

As a result, the package liquor store has been closed since our first quarter year 2019, but re-opened for business subsequent to the end of our fiscal year 2022 in a newly constructed stand-alone building.

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 and was forced to close.

We determined that Store #19

should be demolished and rebuilt as separate buildings.

As a result, the restaurant has been closed since our first quarter year 2019.

During the second quarter of our fiscal year 2019, we entered into a lease for this location, which lease

was subsequently assigned to a limited partnership.

We raised funds to renovate this new location for operation as a “Flanigan’s

Seafood Bar and Grill” restaurant using our limited partnership ownership model.

The option to purchase was retained by the Company

when the lease was assigned to the limited partnership and the option to purchase was exercised by the Company during the second quarter

of our fiscal year 2021.

This new restaurant opened for business during the second quarter of our fiscal year 2022.

During the fourth quarter of our fiscal year 2019, we entered into a lease for this location, which lease

was subsequently assigned to a limited partnership.

We raised funds to renovate this new location for operation as a “Flanigan’s”

restaurant using our limited partnership ownership model, which location we believe will open for business in February, 2023.

We determined that Store #19 should be demolished and rebuilt as separate buildings.

During our first quarter year 2023 we opened our company owned newly built stand-alone package liquor store in Hollywood, Florida (Store #19P) for business.

During our fiscal year 2023, we also continued constructing a stand-alone building on the same site in Hollywood, Florida adjacent to Store #19P, replacing our restaurant destroyed by fire which previously operated at that site (Store #19R).

We anticipate that the restaurant in Hollywood, Florida (Store #19R) will open for business in March 2024.

During the second quarter of our fiscal year 2019, we entered into a lease for this location, which lease was subsequently assigned to a limited partnership.

We raised funds to renovate this new location for operation as a “Flanigan’s” restaurant using our limited partnership ownership model.

This restaurant opened for business in March 2022.

During the fourth quarter of our fiscal year 2019, we entered into a lease for this location, which lease was subsequently assigned to a limited partnership.

We raised funds to renovate this new location for operation as a “Flanigan’s” restaurant using our limited partnership ownership model, which location opened for business in April 2023.

During the fourth quarter of our fiscal year 2019, we entered into a lease for this location.

We are developing

this new location for operation as a “Big Daddy’s Wine & Liquors” retail package liquor store.

This new location opened for business as a “Big Daddy’s Wine & Liquors” retail package liquor store in March 2023.

During the third quarter of our fiscal year 2023,

we closed on the purchase of a three building shopping center in Hallandale Beach, Florida adjacent to our combination package store and

restaurant in Hallandale Beach, Florida (Store #31), which consists of:

(A) one stand-alone building which is leased to two unaffiliated

third party retailers;

(B) the second stand-alone building which is leased to one unaffiliated third party retailer;

and (C) the third

stand-alone building which is leased to one unaffiliated third party retailer.

Casualty Loss

During the first quarter of our

2 unchanged sentences

was damaged by a fire and was forced to close.

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 years 2022, 2021, 2020 and 2019.

liquor store re-opened for business subsequent to the end of our fiscal year 2022 in a newly constructed stand-alone building.

the restaurant will reopen for business in our fiscal year 2024 in a newly constructed stand-alone building where our combination package

liquor store and restaurant at 2505 N.

University Drive, Hollywood, Florida was previously located.

The package liquor store re-opened for business during the first quarter of our fiscal

year 2023 in a newly constructed stand-alone building.

We believe the restaurant will reopen for business in our fiscal year 2024 in a

newly constructed stand-alone building where our combination package liquor store and restaurant was previously located.

Private Offerings

CIC Investors #85, Ltd.

(Flanigan’s, Sunrise, Florida)

February 15, 202 2 , a Florida limited partnership (CIC

Investors #85, Ltd.) in which the Company serves as general partner, completed a private placement of 1,000 Units of limited partnership

interests at $5,000 per Unit for proceeds of $5,000,000, 74 Units of which ($370,000) were purchased by the Company upon the same terms

and conditions as all other investors.

The proceeds of the private placement were used to satisfy (including

reimbursement to us for advances we have made), build-out and renovation expenses and the purchase of such furniture, fixtures and equipment

necessary for operation of our Sunrise, Florida restaurant under the service mark “Flanigan’s” , which commenced

operations on March 22, 2022 .

Capital raised from private investors is credited to sale of noncontrolling

interests in our Statements of Stockholders’ Equity.

On February 15, 2022, a Florida

limited partnership (CIC Investors #85, Ltd.) in which the Company serves as general partner, completed a private placement of 1,000 Units

of limited partnership interests at $5,000 per Unit for proceeds of $5,000,000, 74 Units of which ($370,000) were purchased by the Company

upon the same terms and conditions as all other investors.

The proceeds of the private placement were used to satisfy (including reimbursement

to us for advances we have made), build-out and renovation expenses and the purchase of such furniture, fixtures and equipment necessary

for operation of our Sunrise, Florida restaurant under the service mark “Flanigan’s”, which commenced operations on

March 22, 2022.

Capital raised from private investors is credited to sale of noncontrolling interests in our Statements of Stockholders’

Under ASC 810, Consolidation,

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by the Company.

The proceeds of the private placement are being used to satisfy (including reimbursement to us for advances we have made),

The proceeds of the private placement were used to satisfy (including reimbursement to us for advances we have made),

build-out and renovation expenses and the purchase of such furniture, fixtures and equipment necessary for operation of our Miramar, Florida

restaurant under the service mark “Flanigan’s”, which we believe will commence operations in February, 2023.

raised from private investors is credited to sale of noncontrolling interests in our Statements of Stockholders’ Equity.

restaurant under the service mark “Flanigan’s”, which opened for business on April 18, 2023.

Capital raised from private

investors is credited to sale of noncontrolling interests in our Statements of Stockholders’ Equity.

Under ASC 810, Consolidation,

3 unchanged sentences

as general partner, although the Company has no direct ownership.

of Lease for New Location;

Business Acquisition of “Brendan’s Sports Pub”

Execution of Lease for New Location;

Acquisition of “Brendan’s Sports Pub”

Pompano Beach, Florida (Brendan’s Sports

15 unchanged sentences

of all of the disclosures required under ASC 805.

of 4 COP Liquor License

During our fiscal year 2022,

we purchased a 4 COP Quota Liquor License for Broward County, Florida from an unrelated third party for $445,000.

The liquor license is

currently inactive, but we intend to use it in connection with the operation of the package liquor store we are developing in Miramar,

The 4 COP quota liquor license for Broward County, Florida which we purchased during the third quarter of our fiscal year 2021

and was inactive, was transferred for use in our operation of “Brendan’s Sports Pub”.

Purchase of Real Property;

4 COP Liquor License

El Portal, Florida (“Big Daddy’s

Liquors”/Warehouse)

During the third quarter of our

fiscal year 2023, we closed with a non-affiliated third party on the purchase of the real property it owns located at 8600 Biscayne Boulevard,

El Portal, Florida consisting of approximately 6,000 square feet of commercial space which we sublease and where our “Big Daddy’s

Liquors” package liquor store and our warehouse (Store #47) operate for $3,200,000.

We paid all cash at closing.

Despite the purchase

of this property, the sublease arrangement remains in place with all investors.

Hallandale Beach, Florida

During the third quarter of our

fiscal year 2023, we closed with a non-affiliated third party on the purchase of a three building shopping center in Hallandale Beach,

Florida, which consists of one stand-alone building which is leased to two unaffiliated third parties (approximately 1,450 square feet);

a second stand-alone building which is leased to one unaffiliated third party (approximately 1,500 square feet);

and a third stand-alone

building which is leased to one unaffiliated third party (approximately 2,500 square feet) for $8,500,000.

The rental income generated

by these four lease arrangements is not material.

The real property is located adjacent to our real property located at 4 N.

Highway, Hallandale Beach, Florida, where our combination package store and restaurant (Store #31) operates.

We paid all cash at closing

and accounted for this transaction as an asset acquisition.

Purchase of 4 COP Liquor License

During our fiscal year 2022, we

purchased a 4 COP Quota Liquor License for Broward County, Florida from an unrelated third party for $446,000.

The liquor license is currently

in use in connection with the operation of our new package liquor store in Miramar, Florida (Store #24).

Re-Financing of Existing Mortgages

Re-Finance of Mortgage on Real Property –

Fort Lauderdale, Florida

Re-Finance of Mortgage on Real Property – Fort Lauderdale,

During our fiscal year 2022, we

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Including the $697,000 advance,

the principal amount outstanding amount owed under the West Davie Mortgage Note as of October 1, 2022 is $1,100,000.

The West Davie Mortgage

Note accrues interest at 6% annually, (increased from 5% annually), is amortizable over 15 years with monthly installments of principal

and interest of approximately $9,300 required to be made and a final balloon payment of approximately $487,000 required to be made August

Re-Finance of Mortgage on Real Property –

Hallandale Beach, Florida

the principal amount outstanding amount owed under the West Davie Mortgage Note as of September 30, 2023 is $1,049,000.

The West Davie

Mortgage Note accrues interest at 6% annually, (increased from 5% annually), is amortizable over 15 years with monthly installments of

principal and interest of approximately $9,300 required to be made and a final balloon payment of approximately $487,000 required to be

made August 1, 2032.

Re-Finance of Mortgage on Real Property – Hallandale

Beach, Florida

During our fiscal year 2022, we

re-financed our mortgage debt with our non-affiliated third-party lender relating to our real property located at 4 N.

re-financed our mortgage debt with our non-affiliated third-party lender secured by our real property located at 4 N.

Federal Highway,

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fully amortized over fifteen (15) years, with our monthly payment of principal and interest totaling $33,000.

Re-Opening of Re-Constructed Package Liquor Store –

Hollywood, Florida

Subsequent to the end of our fiscal

year 2022, the package liquor store which was formerly a part of our combination package liquor store and restaurant located at 2505 N.

University Drive, Hollywood, Florida (Store #19) and was forced to close due to damage from a fire during the first quarter of our fiscal

year 2019 re-opened for business in a newly constructed, free-standing building on the adjacent property located at 7990 Dave Road Extension,

Hollywood, Florida (Store #19P).

Subsequent Events

Purchase of Leasehold/Sub-leasehold Interests

In 1974, we sold the underlying

ground lease to the real property located at 8600 Biscayne Boulevard, El Portal, Florida to related and unrelated third parties and simultaneously

subleased it back.

We operate our retail package liquor store (Store #47) and warehouse from this location.

Subsequent to the end of

our fiscal year 2023, we re-purchased a 4% interest in the underlying ground lease, as well as the sublease agreement from an unrelated

third party for $31,000 and currently own 56% of each lease.

As a result, we now only pay 44% of the rent due under the sublease agreement.

Insurance Premiums

1 unchanged sentence

year 2023, for the policy year commencing December 30, 2023, we bound coverage on the following property, general liability, excess liability,

and terrorist policies with premiums totaling approximately $3.281 million, which property, general liability, excess liability and terrorist

insurance includes coverage for our franchises (which is $658,000), which are not included in our consolidated financial statements:

crime and terrorism policies with premiums totaling approximately $3.932 million, of which property, general liability, excess liability

and terrorism insurance includes coverage for our franchises (of approximately $786,000), which are not included in our consolidated

financial statements:

the policy year beginning December 30, 2023, 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 $512,000;

For the policy commencing December 30, 2023, the $10,000 self-insured retention per occurrence increases

to $50,000 for us but remains the same at $10,000 for the limited partnerships.

The one (1) year general liability insurance premium is

in the amount of $455,000;

the policy year beginning December 30, 2023, our general liability insurance for our limited partnerships is a one (1) year policy with

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insurance premium is in the amount of $763,000;

For the policy year beginning December 30, 2022, our terrorist insurance is a one (1) year policy.

The one (1) year terrorist insurance

premium is in the amount of $14,000;

the policy year beginning December 30, 2022, our equipment breakdown insurance is a one (1) year policy.

The one (1) year equipment breakdown

For the policy year beginning December 30, 2023, our crime coverage insurance is a one (1) year policy.

The one (1) year crime coverage

insurance premium is in the amount of $1,000;

the policy year beginning December 30, 2023, our terrorism insurance is a one (1) year policy.

The one (1) year terrorism insurance premium

is in the amount of $19,000.

Of the $3,932,000 annual premium

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

amounts, which includes coverage for our franchises which are not included in our consolidated financial statements, we will pay the annual

premium amounts in full with no financing due to high interest rates.

Payoff of Term Loan

Subsequent to the end of our fiscal

year 2022, we satisfied the principal balance and all accrued interest due on our $5.5 million term loan to our unrelated lender.

outstanding principal balance ($367,000) and accrued interest ($-0-) was paid in full on December 28, 2022.

Subsequent events have been evaluated

through the date these consolidated financial statements were issued and except as disclosed herein, no other events required disclosure.

Subsequent events have

been evaluated through the date these consolidated financial statements were issued and except as disclosed herein, no other events required

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 2. Properties