Accounts and Notes Receivable

12 Months Ended

Jun. 04, 2013

Accounts and Notes Receivable [Abstract]

Accounts and Notes Receivable

5.  Accounts and Notes Receivable

Accounts and notes receivable – current consist of the following (in thousands):

	2013		2012
Rebates receivable	$	874	$	923
Amounts due from franchisees		917		770
Other receivables		3,043		3,007
	$	4,834	$	4,700

We negotiate purchase arrangements, including price terms, with designated and approved suppliers on behalf of us and our franchise system. We receive various volume discounts and rebates based on purchases for our Company-owned restaurants from numerous suppliers.

Amounts due from franchisees consist of royalties, license, and other miscellaneous fees, a substantial portion of which represents current and recently-invoiced billings.  Also included in this amount is the current portion of the straight-lined rent receivable from franchise sublessees.

As of June 4, 2013 and June 5, 2012, Other receivables consisted primarily of amounts due for third-party gift card sales ($1.8 million and $1.3 million, respectively), amounts due from landlords ($0.5 million and $0.4 million, respectively), and amounts due from our distributor ($0.4 million and $0.9 million, respectively).

Our RT Midwest franchise filed for Chapter 11 protection during the first quarter of fiscal 2013.  RT Midwest had indebtedness of $2.3 million owed to RTI at the time of the Chapter 11 filing.  During the fourth quarter of fiscal 2012, we wrote off the $2.3 million in franchise fee receivables due from RT Midwest and the associated unearned franchise fees in anticipation of the Chapter 11 filing.  On January 15, 2013, RT Midwest successfully emerged from its Chapter 11 bankruptcy restructuring.