NOTE 11 - COMMITMENTS AND CONTINGENCIES

9 Months Ended

Sep. 30, 2018

Commitments and Contingencies Disclosure [Abstract]

(11) - COMMITMENTS AND CONTINGENCIES

(11) COMMITMENTS AND CONTINGENCIES

a) Real Property Leases

The Company leases six restaurant spaces from unrelated parties. Rent expense paid was $329,865 and $321,923 for the nine months ended September 30, 2018 and 2017. Future minimum lease payments under these real property lease agreements are as follows:

For the Year Ending December 31,	ESSE	IBE	IBA	IBWS	IBCH	IBCS	Total
2018 (3 months)	$ 12,000	$ 8,400	$ 18,154	$ 24,527	$ 16,378	$ 24,300	$ 91,759
2019	$ 36,000	$ 25,200	$ 74,795	$ 102,643	$ 67,477	$ 98,400	$ 368,515
2020	$ -	$ -	$ 77,038	$ 102,643	$ 69,501	$ 100,200	$ 349,382
2021	$ -	$ -	$ 25,931	$ 102,643	$ 23,394	$ 102,000	$ 253,968
2022	$ -	$ -	$ -	$ 102,643	$ -	$ 103,800	$ 206,443
Thereafter	$ -	$ -	$ -	$ 321,616	$ -	$ 621,600	$ 943,216
Total minimum lease payments	$ 48,000	$ 33,600	$ 195,918	$ 756,715	$ 176,750	$ 1,050,300	$ 2,213,283

ESSE: El Senor Sol - Evergreen; IBE: Illegal Burger Evergreen; IBA: Illegal Burger- Arvada; IBWS - Illegal Burger Writer Square; IBCH - Illegal Burger Capitol Hill; IBCS - Illegal Burger CitiSet

The Company’s leases for El Senor Sol - Evergreen and Illegal Burger - Evergreen locations expired on August 31, 2017. The Company is currently leasing on a month to month basis and in August 2018 signed new one-year leases for these locations.

b) Other

The Company is subject to asserted claims and liabilities that arise in the ordinary course of business. The Company maintains insurance policies to mitigate potential losses from these actions. In the opinion of management, the amount of the ultimate liability with respect to those actions will not materially affect the Company’s financial position or results of operations.

c) Litigation

On October 8, 2018, the creditor holding the First Amended Senior Secured Note from Illegal Burger, LLC filed suit in Broward County, Florida. The Company has received an extension of time to answer this lawsuit. The Company expects to either negotiate a settlement agreement or to vigorously defend this action.