REFRANCHISING

3 Months Ended

Mar. 27, 2022

Refranchising

Refranchising

REFRANCHISING

As part of its ongoing franchising efforts, the Company may, from time to time, make opportunistic acquisitions of operating restaurants in order to convert them to franchise locations or acquire existing franchise locations to resell to another franchisee across all of its brands.

The Company meets all of the criteria requiring that acquired assets used in the operation of certain restaurants be classified as held for sale. As a result, the following assets have been classified as held for sale on the accompanying condensed consolidated balance sheets as of March 27, 2022 and December 26, 2021 (in millions):

	March 27, 2022		December 26, 2021
Property, plant and equipment	$	0.8	$	0.8
Operating lease right of use assets	$	4.5	$	4.7
Total	$	5.3	$	5.5

Operating lease liabilities related to the assets classified as held for sale in the amount of $4.6 million and $4.8 million have been classified as current liabilities on the accompanying condensed consolidated balance sheets as of March 27, 2022 and December 26, 2021, respectively.

Refranchising losses during the thirteen weeks ended March 27, 2022 and March 28, 2021 were as follows (in millions):

	Thirteen Weeks Ended
	March 27, 2022		March 28, 2021
Restaurant costs and expenses, net of revenue	$	0.5	$	0.4