Accrued Liabilities

6 Months Ended

Jun. 30, 2024

Accrued Liabilities.

Accrued Liabilities

6. Accrued Liabilities

Accrued liabilities consist of the following (in thousands):

	June 30, 2024		December 31, 2023
Marketing Funds (a)	$	30,685	$	28,753
Accrued payroll and related employee costs		9,907		14,231
Accrued taxes		1,151		2,567
Accrued professional fees		1,186		937
Settlement payable (b)		55,000		55,700
Other		4,127		5,246
	$	102,056	$	107,434

(a) Consists primarily of liabilities recognized to reflect the contractual restriction that all funds collected in the Marketing Funds must be spent for designated purposes pursuant to the terms of the applicable franchise agreements. See Note 2, Summary of Significant Accounting Policies for additional information.

(b) Represents the net settlement payable as part of the settlement of industry class-action lawsuits and other legal settlements. See Note 11, Commitments and Contingencies for additional information.

The following table presents a roll forward of the severance and related costs liability as related to the Reorganization and the strategic shift and restructure of the Company’s business, which is in “Accrued payroll and related employee costs” in the table above (in thousands):

Balance, January 1, 2024	$	2,622
Severance and other related expenses		(27)
Cash payments		(1,780)
Balance, June 30, 2024 (a)	$	815

(a) The remaining liability balance is related to the strategic shift and restructure of the Company’s business that occurred in the third quarter of 2023.