NOTE 11 - COMMITMENTS AND CONTINGENCIES

3 Months Ended

Mar. 31, 2019

Commitments and Contingencies Disclosure [Abstract]

(11) - COMMITMENTS AND CONTINGENCIES

(11) COMMITMENTS AND CONTINGENCIES

a) Real Property Leases

The Company leases 6 (six) restaurant spaces from unrelated parties. Rent expense paid was $135,861 and $109,106 for the three months ended March 31, 2019 and 2018.

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
2019 (5 months)	$ 20,000	$ 14,000	$ 56,096	$ 76,982	$ 50,608	$ 47,700	$ 265,386
2020	$ -	$ -	$ 77,038	$ 102,643	$ 69,501	$ 65,400	$ 314,582
2021	$ -	$ -	$ 25,931	$ 102,643	$ 23,394	$ 67,200	$ 219,168
2022	$ -	$ -	$ -	$ 104,354	$ -	$ 69,000	$ 173,354
2023	$ -	$ -	$ -	$ 112,908	$ -	$ 70,800	$ 183,708
Thereafter	$ -	$ -	$ -	$ 206,997	$ -	$ 354,000	$ 560,997
Total minimum lease payments	$ 20,000	$ 14,000	$ 159,065	$ 706,527	$ 143,503	$ 674,100	$ 1,717,195

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

The Company’s leases for El Senor Sol - Evergreen locations expire on August 31, 2019.

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 creditor is demanding $565,267 plus interest, costs and attorney fees. The Company expects to either negotiate a settlement agreement or to vigorously defend this action.