What changed in this filing

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Item 2. Properties

2025-12-19 compared with 2024-12-27 · 213 added, 186 removed, 170 unchanged (70% of the section changed)

Our operations are conducted primarily

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 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) we constructed a 4,500 square foot stand-alone building here for the operation of the Company-owned restaurant, (Store #19R), which opened for business during the second quarter of 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;

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:

(A) one stand-alone building, approximately 18,828 square feet, (i) houses our package liquor store #45 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, of which 950

square feet is leased to one unaffiliated third party retailer and 500 square feet which is occupied by us;

(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

All of our units require periodic

refurbishing in order to remain competitive.

We have budgeted $550,000 for our refurbishing

program for fiscal year 2025, although capital expenditures of our refurbishing program for our fiscal year 2025 may be significantly

See Item 7, "Liquidity and Capital Resources" for discussion of the amounts spent in fiscal year 2024.

Our operations are conducted

primarily 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 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 2024;

and (ii) we constructed a 4,500 square

foot stand-alone building here for the operation of the Company-owned restaurant, (Store #19R), which opened for business during

the second quarter of 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;

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:

(A) one stand-alone building, approximately 18,828

square feet, (i) houses our package liquor store #45 and (ii) is otherwise leased to ten unaffiliated third party retailers;

(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, of which 950 square feet

is leased to one unaffiliated third party retailer and 500 square feet which is occupied by us;

(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);

we are developing a 6,400 square foot stand-alone building in Cutler Bay, Florida, which vacant property we purchased in May

2025 and will house our limited partnership owned Cutler Bay, Florida based restaurant, (Store #3), which we anticipate will open

for business during our fiscal year 2027.

All of our units require

periodic refurbishing in order to remain competitive.

We have budgeted $750,000 for our refurbishing program for fiscal year 2026, although

capital expenditures of our refurbishing program for our fiscal year 2026 may be significantly higher.

See Item 7, “Liquidity and

Capital Resources” for discussion of the amounts spent in fiscal year 2025.

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

information related to the properties upon which our operations are conducted and/or will be 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.

Big Daddy’s Liquors

5 unchanged sentences

Big Daddy’s Liquors #7

Flanigan's Enterprises, Inc.

Enterprises, Inc.

Hialeah, Florida

Big Daddy’s Liquors #8

Flanigan's Enterprises, Inc.

Enterprises, Inc.

959 State Road 84

5 unchanged sentences

1/1/10 to 12/31/29

Flanigan's Legends Seafood Bar and Grill #11

Flanigan’s Legends Seafood Bar

and Grill #11

11 Corporation, Inc.

10 unchanged sentences

Deerfield Beach, Florida

6/1/79 to 6/1/29

Options to 6/1/34

1 unchanged sentence

Flanigan’s Seafood Bar and Grill #15

CIC Investors #15 Ltd.

Investors #15 Ltd.

Commercial Blvd.

3 unchanged sentences

Flanigan’s Seafood Bar and

Twenty Seven Birds Corp.

Seven Birds Corp.

2721 Bird Avenue

3 unchanged sentences

Big Daddy’s Liquors #18

Twenty Seven Birds Corp.

Miami, Florida

Seven Birds Corp.

2/15/72 to 12/31/25

1 unchanged sentence

Flanigan’s Wine & Liquors #19 (8)

Flanigan’s Enterprises, Inc.

Enterprises, Inc.

University Dr., Building A

1 unchanged sentence

Company-Owned

Flanigan’s Seafood Bar and

Seafood Bar and

Grill #19 (8)

Flanigan’s Enterprises, Inc.

University Dr., Building B

Hollywood, Florida

Dr., Building B

Company-Owned

Flanigan's Seafood Bar and Grill #20

Seafood Bar and Grill #20

Flanigan’s Enterprises, Inc.

13205 Biscayne Blvd.

North Miami, Florida

Miami, Florida

Company-Owned

Big Daddy’s Liquors #20

Daddy’s Liquors #20

Flanigan’s Enterprises, Inc.

13185 Biscayne Blvd.

North Miami, Florida

Miami, Florida

Company-Owned

Flanigan's Seafood Bar and Grill #22

Seafood Bar and Grill #22

Flanigan’s Enterprises, Inc.

2 unchanged sentences

Big Daddy’s Wine & Liquors #24

Flanigan’s Enterprises, Inc.

Enterprises, Inc.

11225 Miramar Parkway, #245

8 unchanged sentences

Pompano Beach, Florida

Flanigan's Seafood Bar and Grill #31

Seafood Bar and Grill #31

Flanigan’s Enterprises, Inc.

Federal Highway

Hallandale, Florida

Company-Owned

Flanigan’s Seafood Bar and Grill #33

Flanigan’s Enterprises, Inc.

Enterprises, Inc.

Federal Highway

2 unchanged sentences

Big Daddy’s Liquors #34

Flanigan's Enterprises, Inc.

Flanigan’s Enterprises,

9494 Harding Ave.

3 unchanged sentences

Flanigan’s Seafood Bar and Grill #40

Flanigan's Enterprises, Inc.

Enterprises, Inc.

Lauderdale, Florida

6 unchanged sentences

Big Daddy’s Liquors #45

Flanigan’s Enterprises, Inc.

Flanigan’s Enterprises,

Miami, Florida

7/1/19 to 6/30/29

Option to 6/30/34

Options to 6/30/34

Big Daddy’s Liquors #47

Flanigan's Enterprises, Inc.

Enterprises, Inc.

8600 Biscayne Blvd.

2 unchanged sentences

Options to 1/1/50

(Sublease) Company-

(Sublease) Company-Owned

Flanigan’s Seafood Bar and Grill #13

CIC Investors #13, Ltd.

CIC Investors

Dixie Highway

1 unchanged sentence

6/01/91 to 1/31/31

Option to 1/31/36

Name and Location

Options to 1/31/36

Flanigan’s #25

1 unchanged sentence

11225 Miramar Parkway, #250

Miramar, Florida

3/5/22 to 3/5/32

1 unchanged sentence

Flanigan’s Seafood Bar and Grill #50

CIC Investors #50, Ltd.

CIC Investors

17185 Pines Boulevard

6 unchanged sentences

Flanigan’s Seafood Bar and Grill #60

CIC Investors #60 Ltd.

CIC Investors

9516 Harding Avenue

6 unchanged sentences

5/01/05 to 6/30/35

Option to 6/30/40

Options to 6/30/40

Flanigan’s Seafood Bar and Grill #70

CIC Investors #70 Ltd.

CIC Investors

12790 SW 88 St.

1 unchanged sentence

4/1/00 to 3/31/30

Option to 3/31/30

Options to 3/31/35

Flanigan’s Seafood Bar and Grill #75

Flanigan’s Enterprises, Inc.

Federal Highway

Stuart, Florida

5/1/10 to 4/30/26

Option to 4/30/31

Flanigan’s Seafood Bar and Grill #80

CIC Investors #80 Ltd.

Miami, Florida

Options to 4/30/31

Flanigan’s Seafood Bar and

Investors #80 Ltd.

6/15/01 to 12/14/29

3 unchanged sentences

Sunrise Blvd.

Sunrise, Florida

3/1/19 to 2/28/29

2 unchanged sentences

Name and Location

Flanigan's Seafood Bar and Grill #90

CIC Investors #90 Ltd.

Miami, Florida

Flanigan’s Seafood

Bar and Grill #90

Investors #90 Ltd.

Limited Partnership

4/1/11 to 3/31/31

Option to 3/31/36

Options to 3/31/36

Flanigan’s Seafood Bar and Grill #95

Flanigan’s Enterprises, Inc.

Enterprises, Inc.

2460 Weston Road

1 unchanged sentence

10/1/17 to 9/30/27

Option to 9/30/32

Options to 9/30/32

Flanigan’s Calusa Center, LLC

12750 – 12790 S.W.

Miami, Florida

Company-owned

5 unchanged sentences

shopping center

Franchised by Company.

Lease assigned to franchisee.

Flanigan’s Enterprises, Inc.

NE 13 th Avenue

Park, FL 33334

7/1/2025-6/30/2027

Flanigan’s #3 (13)

Limited Partnership

Company-Owned

(1) Franchised

assigned to franchisee.

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 56% of the underlying ground lease, as well as the sublease agreement.

In April, 2023 we purchased the real property, subject to the ground lease and sublease agreement through which we continue to occupy the premises.

As a result, we pay 44% of the rent due under the ground lease and the sublease agreement.

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.

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 56% of the underlying ground lease, as well as the sublease agreement.

In April 2023 we purchased the real property, subject to the ground lease and sublease agreement

through which we continue to occupy the premises.

As a result, we pay 44% of the rent due

under the ground lease and the sublease agreement.

(4) Effective

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

for the franchisee.

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.

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 package liquor store #45 (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.

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 package liquor store #45 (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.

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

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

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 was closed since our first quarter year 2019, but re-opened for business in the first quarter of fiscal 2023 in a newly constructed stand-alone building #19P.

During the second quarter of our fiscal year 2024, we re-opened our restaurant in a stand-alone building on the same site in Hollywood, Florida adjacent to Store #19P.

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.

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

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 was closed since our first quarter

year 2019, but re-opened for business in the first quarter of fiscal 2023 in a newly constructed

stand-alone building #19P.

During the second quarter of our fiscal year 2024, we re-opened

our restaurant in a stand-alone building on the same site in Hollywood, Florida adjacent

to Store #19P.

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.

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

new location opened for business as a “Big Daddy’s Wine & Liquors”

retail package liquor store in March 2023.

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.

(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.

(12) During the second quarter

of our fiscal year 2025, we entered into a two-year lease for this storage unit.

this storage unit had been a one year lease.

(13) During the third quarter

of our fiscal year 2025, we purchased vacant real property located in Cutler Bay, Florida.

plan to construct a 6,400 square foot building to lease to a limited partnership to be formed

of which we will be the sole general partner to construct and operate a “Flanigan’s”

Re-construction Following Casualty Loss

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.

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

year 2023 in a newly constructed stand-alone building.

The restaurant re-opened for business during the second quarter of our fiscal year

2024 in a newly constructed stand-alone building where our combination package liquor store and restaurant was previously 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.

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

our fiscal year 2023 in a newly constructed stand-alone building.

The restaurant re-opened for business during the second quarter of

our fiscal year 2024 in a newly constructed stand-alone building where our combination package liquor store and restaurant was previously

Purchase of Real Property;

Leasehold / Sub-leasehold

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.

Sub-leasehold Interests

Purchase of Real Property

During the third quarter

of our fiscal year 2025, we purchased the vacant real property located at 20971 Old Cutler Road, Cutler Bay, Florida 33189 (the “Cutler

Bay Property”) for a purchase price of $2,200,000.

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 a portion of which is leased to one unaffiliated third party (approximately 950 square

feet) and a portion of which is occupied by us (approximately 500 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 three lease arrangements is not material.

The real property is

located adjacent to our real property located at 4 N.

Federal 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.

We plan to construct a 6,400 square foot building

on the Cutler Bay Property to lease to a limited partnership of which we will be the sole general partner pursuant to our limited partnership

financial arrangement to develop and operate a “Flanigan’s” restaurant.

Purchase of Leasehold/Sub-leasehold Interests

3 unchanged sentences

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

During the first quarter of

our fiscal year 2024, we re-purchased a 4% interest in the underlying ground lease, as well as the sublease agreement from an unrelated

During the first quarter

of our fiscal year 2024, 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 ground lease and

the sublease agreement.

As a result, we now only pay 44% of the rent due under the ground lease

and the sublease agreement.

Subsequent Events

Subsequent to the end of

our fiscal year 2024, we entered into a new Master Services Agreement with our current vendor for a period of one (1) year effective January

1, 2025, with Company options of four (4) one (1) year renewal options to extend the term of the same.

Subsequent to the end of our fiscal year 2024,

for the policy year commencing December 30, 2024, we bound coverage on the following property, general liability, auto, excess liability,

and terrorism policies with premiums totaling approximately $4,014,000 of which property, general liability, excess liability and terrorism

insurance includes coverage for our franchises and our managed restaurant (of approximately $867,000), which are not included in our

consolidated financial statements:

the policy year beginning December 30, 2024, our general liability insurance, excluding limited partnerships, is a one (1) year policy

with our insurance carriers.

For the policy commencing December 30, 2024, the self-insured retention per occurrence is $50,000.

(1) year general liability insurance premium is in the amount of $479,000;

the policy year beginning December 30, 2024, the general liability insurance for our limited partnerships, including franchisees and the

managed restaurant is a one (1) year policy with our insurance carriers.

For the policy commencing December 30, 2024, the self-insured

retention per occurrence is $10,000.

The one (1) year general liability insurance premium is in the amount of $1,099,000;

the policy year beginning December 30, 2024, our automobile insurance is a one (1) year policy.

The one (1) year automobile insurance

premium is in the amount of $234,000;

the policy year beginning December 30, 2024, our property insurance is a one (1) year policy.

The one (1) year property insurance premium

is in the amount of $1,317,000;

the policy year beginning December 30, 2024, our excess liability insurance is a one (1) year policy.

The one (1) year excess liability

insurance premium is in the amount of $866,000;

the policy year beginning December 30, 2024, 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 $4,014,000 annual

premium amounts, which includes coverage for our franchises and our managed restaurant 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.

Subsequent events have

been evaluated through the date these consolidated financial statements were issued and except as provided above, no events required disclosure.

Subsequent to the end of our

fiscal year 2025, we re-financed with our institutional lender, our mortgage loan encumbering the real property and improvements located

at 12750 – 12790 S.W.

88 th Street, Miami, Florida where our Flanigan’s Calusa Center and our limited partnership

owned Flanigan’s Seafood Bar and Grill restaurant operate (Store #70), without increasing the principal amount borrowed at this

time ($5,676,856).

The re-financed mortgage loan earns interest at a fluctuating rate per year equal to the sum of (i) the greater of

the Term SOFR Daily Floating Rate or the Index Floor (which for purposes hereof is 0.00%) and (ii) 2.25%, with the first payment of principal

and interest due January 31, 2026 and monthly thereafter on the last day of each month until November 30, 2030 when the entire principal

payment and all accrued interest is due in full.

We received no excess funds from the re-financing of this mortgage loan.

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