COMMITMENTS AND CONTINGENCIES	6 Months Ended
Jun. 30, 2015
COMMITMENTS AND CONTINGENCIES [Abstract]
COMMITMENTS AND CONTINGENCIES	NOTE 6 – COMMITMENTS AND CONTINGENCIES Commitments: Franchise agreement The Company operates its Denver restaurant property under a franchise agreement with the Franchisor under an initial ten-year term, renewable for two additional five-year terms. Pursuant to the franchise agreement, as amended, the Company is to pay royalty fees based on a percentage of gross revenues (2.5%, subject to a monthly floor of $5,000) , plus additional fees and costs for marketing, training, inventory and other franchisor costs. Two officers of the Company have personally guaranteed royalty payments to the Franchisor. On December 30, 2014, SHD entered into a Fifth Amendment to its FA with the Franchisor in connection with the opening of a new Southern Hospitality restaurant in Lone Tree, Colorado. Under the FA, SHD partially assigned its rights to SHLT to use the Franchisor's marks, business methods, proprietary products, confidential information and intellectual property to operate a Southern Hospitality restaurant. In addition, pursuant to the FA, the Franchisor waived certain initial fees in connection with SHLT opening a restaurant in Lone Tree, Colorado. On February 13, 2015, SHD entered into a Sixth Amendment to its FA with the Franchisor in connection with the potential for opening two Southern Hospitality restaurants in Colorado Springs, Colorado. Under the FA, SHD partially assigned its rights to SHSK, a 51% owned subsidiary of the Company, and Southern Hospitality Tejon, LLC, a wholly-owned subsidiary of the Company, to use the Franchisor's marks, business methods, proprietary products, confidential information and intellectual property to operate a Southern Hospitality restaurant. For the three and six months ended June 30, 2015 and 2014, the Company incurred franchise royalty expense of $41,000, $57,700, $14,300 and $28,300,respectively. Leases: In April 2012, the Company entered into a ten-year, non-cancellable lease for the restaurant in Denver, Colorado. This lease provides for two, five-year renewal options. Rent payments are approximately $16,000 per month plus certain common area maintenance charges, as defined, and are subject to escalation provisions. Lease expense was approximately $49,500, $99,000, $48,000 and $96,000 for the three and six months ended June 30, 2015 and 2014, respectively. The Company has a ten-year lease with BBLLC, a related party, for the real property in connection with the restaurant location in Colorado Springs. The lease commenced upon taking possession of the premises on January 11, 2014. Rent is approximately $33,340 per month for the first 60 months, and thereafter is subject to adjustment every 60 months. This lease provides for one, ten-year renewal option. Related party lease expense was approximately $100,300, $200,500, $99,100 and $184,000 for the three and six months ended June 30, 2015 and 2014, respectively. The Company has a ten-year, non-cancellable lease for the restaurant in Lone Tree, Colorado. The lease provides for an initial lease term of ten years and for two, five-year renewal options. Rent payments are approximately $9,900 per month plus certain common area maintenance charges, and are subject to escalation provisions. This location opened April 27, 2015, at which time the lease commenced. Lease expense was approximately $18,197 for the three and six months ended June 30, 2015 (none in 2014). In April 2015, SHQG entered into a non-cancellable lease for the Company's first fast casual restaurant in Glendale, Colorado. The initial term of this lease provides for expiration on July 31, 2020. This lease includes three five-year extension options. Rent payments are approximately $10,600 per month which includes certain common area maintenance charges, and are subject to escalation provisions. This location is anticipated to open in October 2015. Lease expense was approximately $21,300 for the three and six months ended June 30, 2015 (none in 2014). On January 1, 2014, the Company assumed a lease from a related party for the corporate office in Colorado Springs. The lease is for 78 months with an unaffiliated party. Monthly rent is $5,800 per month escalating up to $6,000 per month in year six. The initial term of the lease provides for expiration on December 31, 2016. Lease expense for the three and six months ended June 30, 2015 and 2014 was $15,700, $31,400, $15,700 and $27,800, respectively. Contingencies: From time to time, the Company may become party to litigation and other claims in the ordinary course of business. To the extent that such claims and litigation arise, management provides for them if upon the advice of counsel, losses are determined to be both probable and estimable.

NOTE 6 – COMMITMENTS AND CONTINGENCIES

Commitments:

Franchise agreement

The Company operates its Denver restaurant property under a franchise agreement with the Franchisor under an initial ten-year term, renewable for two additional five-year terms. Pursuant to the franchise agreement, as amended, the Company is to pay royalty fees based on a percentage of gross revenues (2.5%, subject to a monthly floor of $5,000) , plus additional fees and costs for marketing, training, inventory and other franchisor costs. Two officers of the Company have personally guaranteed royalty payments to the Franchisor.

On December 30, 2014, SHD entered into a Fifth Amendment to its FA with the Franchisor in connection with the opening of a new Southern Hospitality restaurant in Lone Tree, Colorado. Under the FA, SHD partially assigned its rights to SHLT to use the Franchisor's marks, business methods, proprietary products, confidential information and intellectual property to operate a Southern Hospitality restaurant. In addition, pursuant to the FA, the Franchisor waived certain initial fees in connection with SHLT opening a restaurant in Lone Tree, Colorado.

On February 13, 2015, SHD entered into a Sixth Amendment to its FA with the Franchisor in connection with the potential for opening two Southern Hospitality restaurants in Colorado Springs, Colorado. Under the FA, SHD partially assigned its rights to SHSK, a 51% owned subsidiary of the Company, and Southern Hospitality Tejon, LLC, a wholly-owned subsidiary of the Company, to use the Franchisor's marks, business methods, proprietary products, confidential information and intellectual property to operate a Southern Hospitality restaurant.

For the three and six months ended June 30, 2015 and 2014, the Company incurred franchise royalty expense of $41,000, $57,700, $14,300 and $28,300,respectively.

Leases:

In April 2012, the Company entered into a ten-year, non-cancellable lease for the restaurant in Denver, Colorado. This lease provides for two, five-year renewal options. Rent payments are approximately $16,000 per month plus certain common area maintenance charges, as defined, and are subject to escalation provisions. Lease expense was approximately $49,500, $99,000, $48,000 and $96,000 for the three and six months ended June 30, 2015 and 2014, respectively.

The Company has a ten-year lease with BBLLC, a related party, for the real property in connection with the restaurant location in Colorado Springs. The lease commenced upon taking possession of the premises on January 11, 2014. Rent is approximately $33,340 per month for the first 60 months, and thereafter is subject to adjustment every 60 months. This lease provides for one, ten-year renewal option. Related party lease expense was approximately $100,300, $200,500, $99,100 and $184,000 for the three and six months ended June 30, 2015 and 2014, respectively.

The Company has a ten-year, non-cancellable lease for the restaurant in Lone Tree, Colorado. The lease provides for an initial lease term of ten years and for two, five-year renewal options. Rent payments are approximately $9,900 per month plus certain common area maintenance charges, and are subject to escalation provisions. This location opened April 27, 2015, at which time the lease commenced. Lease expense was approximately $18,197 for the three and six months ended June 30, 2015 (none in 2014).

In April 2015, SHQG entered into a non-cancellable lease for the Company's first fast casual restaurant in Glendale, Colorado. The initial term of this lease provides for expiration on July 31, 2020. This lease includes three five-year extension options. Rent payments are approximately $10,600 per month which includes certain common area maintenance charges, and are subject to escalation provisions. This location is anticipated to open in October 2015. Lease expense was approximately $21,300 for the three and six months ended June 30, 2015 (none in 2014).

On January 1, 2014, the Company assumed a lease from a related party for the corporate office in Colorado Springs. The lease is for 78 months with an unaffiliated party. Monthly rent is $5,800 per month escalating up to $6,000 per month in year six. The initial term of the lease provides for expiration on December 31, 2016. Lease expense for the three and six months ended June 30, 2015 and 2014 was $15,700, $31,400, $15,700 and $27,800, respectively.

Contingencies:

From time to time, the Company may become party to litigation and other claims in the ordinary course of business. To the extent that such claims and litigation arise, management provides for them if upon the advice of counsel, losses are determined to be both probable and estimable.