Franchise Acquisitions

The Company acquired six franchise-operated restaurants during the fifty-three weeks ended January 3, 2017 (Successor). The Company accounts for the acquisition of franchise-operated restaurants using the acquisition method of accounting for business combinations. The purchase price allocations were based on fair value estimates determined using significant unobservable inputs (Level 3). The goodwill recorded primarily relates to the market position and future growth potential of the markets acquired and is expected to be deductible for income tax purposes. There were no franchise acquisitions during the twenty-six weeks ended December 29, 2015 (Successor), the twenty-six weeks ended June 30, 2015 (Predecessor) or the fifty-two weeks ended December 30, 2014 (Predecessor). The following table provides detail of the combined acquisitions for the fifty-three weeks ended January 3, 2017 (Successor) (dollars in thousands):



	Successor
	January 3, 2017
Franchise-operated restaurants acquired from franchisees	6

Goodwill	$	969
Property and equipment	821
Land and building	2,127
Liabilities assumed	(26		)
Other prepaid assets	—
Total Consideration	$	3,891

Total consideration for the franchise-operated restaurants excluding the land and building acquired from a franchisee was $1.8 million.