−Removed: A description of our restaurant properties appears above under the heading “BUSINESS—Locations.” We lease our executive offices, consisting of approximately 1,000 square feet located at 405 West Main Street, West Fargo, North Dakota, on a month-to-month basis at a cost of $500 per month.
+Added: A description of our restaurant properties appears above under the heading “BUSINESS—Locations.” We lease our executive offices, consisting of approximately 1,000 square feet located at 405 West Main Street, West Fargo, North Dakota, on a month-to-month basis at the cost of $500 per month.
+Added: In addition, effective January 2, 2022, we have agreed to reimburse Brimmer Company, LLC for the monthly rent of approximately $1,300 on approximately 1100 square feet in Minnetonka, Minnesota, where certain administrative activities are performed.
We believe our current office space is suitable and adequate for its intended purposes and our near-term expansion plans.
−Removed: We currently have mortgages on each of our restaurant locations except two.
−Removed: As of January 3, 2021, the total amount of the loans we owe on those properties is approximately $3,200,000.
−Removed: Our monthly payments on these mortgages total $31,128.
−Removed: During 2020, two of the Company’s mortgage lenders suspended and deferred current payments for a period of three months.
−Removed: A total of $93,602 in payments were deferred under these arrangements and the deferred amount was added to the final payments due under the mortgages.
+Added: On June 28, 2021, we refinanced most of our existing mortgage debt, which bore interest at 4.75%.
+Added: As of January 2, 2022, we had $3,049,971 in contractual obligations principally for amounts due under mortgages on the real property on which our stores are situated.
+Added: Our monthly required payment is approximately $22,700.
+Added: Under the terms of the refinanced mortgage debt, we lowered the nominal interest cost from 4.75% to 3.45% fixed for the next ten years.
Rental Properties
−Removed: We currently lease the land one of our Sioux Falls, South Dakota locations on a month-to-month basis and the monthly rent we pay is $1,600.
+Added: We currently lease the land for one of our Sioux Falls, South Dakota locations on a month-to-month basis, and the monthly rent is $1,600.
+Added: We also pay a combined total of approximately $1,800 for office space in West Fargo, North Dakota and Minnetonka, Minnesota.
+Added: Both corporate locations are paid for and utilized on a month-to-month basis.
Regulation and Compliance
Our operations are subject to a wide range of federal, state, and local government regulations, including those relating to, among others, public health and safety, zoning and fire codes, labor, and franchising.
−Removed: Our failure to obtain or retain food or other licenses and registrations or exemptions would adversely affect the operations of our restaurants.
+Added: Our failure to obtain or retain food or other licenses and registrations or exemptions could adversely affect the operations of our restaurants.
We operate each of our restaurants in accordance with standards and procedures designed to comply with applicable laws, codes, and regulations.
−Removed: To date, we have not experienced and do not anticipate any significant problems in obtaining required licenses, permits or approvals, however, any difficulties, delays or failures in obtaining such licenses, permits, registrations, exemptions, or approvals in the future could delay or prevent the opening of, or adversely impact the viability of, a restaurant.
+Added: To date, we have not experienced and do not anticipate any significant problems in obtaining required licenses, permits, or approvals;
+Added: however, any difficulties, delays, or failures in obtaining such licenses, permits, registrations, exemptions, or approvals in the future could delay or prevent the opening of, or adversely impact the viability of, a restaurant.
The development and construction of additional restaurants will be subject to compliance with applicable zoning, land use, and environmental regulations.
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We are also subject to the Fair Labor Standards Act, the Immigration Reform and Control Act of 1986, and various federal and state laws governing such matters as minimum wages, overtime, unemployment tax rates, workers’ compensation rates, citizenship requirements, and other working conditions.
−Removed: A significant portion of the hourly staff is paid at rates consistent with the applicable federal or state minimum wage and, accordingly, increases in the minimum wage will increase labor costs.
+Added: A significant portion of the hourly staff is paid at rates consistent with the applicable federal or state minimum wage.
+Added: Accordingly, increases in the minimum wage will increase labor costs.
We are also subject to various laws and regulations relating to any future franchise operations.
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We have not conducted a comprehensive environmental review of our properties or operations.
−Removed: No assurance can be given that we have identified potential environmental liabilities at our properties or that such liabilities will not have a material adverse effect on our financial condition.
+Added: No assurance can be given that we have identified potential environmental liabilities at our properties or that such costs would not have a material adverse effect on our financial condition if assessed.
Legal Proceedings.
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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.