NOTE 11 - COMMITMENTS AND CONTINGENCIES

6 Months Ended

Jun. 30, 2019

Commitments and Contingencies Disclosure [Abstract]

(11) - COMMITMENTS AND CONTINGENCIES

(11) COMMITMENTS AND CONTINGENCIES

a) Real Property Leases

The Company leases 7 (seven) restaurant spaces and its corporate office from unrelated parties. Rent expense paid was $111,509 and $209,038 and $211,294 and $102,188 for the three and six months ended June 30, 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	IPL
2019 (6 months)	$ 8,000	$ 5,600	$ 37,398	$ 51,322	$ 33,739	$ 31,800	$ 31,807
2020	$ -	$ -	$ 77,038	$ 102,643	$ 69,501	$ 65,400	$ 64,690
2021	$ -	$ -	$ 25,931	$ 102,643	$ 23,394	$ 67,200	$ 66,151
2022	$ -	$ -	$ -	$ 104,354	$ -	$ 69,000	$ 67,648
2023	$ -	$ -	$ -	$ 112,908	$ -	$ 70,800	$ 69,183
Thereafter	$ -	$ -	$ -	$ 206,997	$ -	$ 354,000	$ 235,757
Total minimum lease payments	$ 8,000	$ 5,600	$ 140,367	$ 680,867	$ 126,634	$ 658,200	$ 535,236
	WCVC	Total
2019 (6 months)	$ 13,260	$ 212,925
2020	$ 26,520	$ 405,792
2021	$ 13,260	$ 298,579
2022	$ -	$ 241,002
2023	$ -	$ 252,891
Thereafter	$ -	$ 796,754
Total minimum lease payments	$ 53,040	$ 2,207,943

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; IPL - Illegal Pizza - Lauderhill; WCVC - corporate office

The Company’s leases for El Senor Sol B 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. This action is in the discovery phase.