2. Franchise Programs

As of June 4, 2013, our franchise programs included arrangements with 26 domestic and international Ruby Tuesday concept franchisees and five domestic Lime Fresh franchisees. At the end of fiscal 2013, our franchisees collectively operated 77 Ruby Tuesday and six Lime Fresh restaurants. We do not own any equity interest in our existing franchisees. As discussed further in Note 4 to the Consolidated Financial Statements, during fiscal 2011 we acquired the remaining 99% and 50% membership interests of 11 franchise partnerships and acquired an additional Ruby Tuesday restaurant from a twelfth franchise partnership.

We enter into development agreements with our franchisees that require them to open varying numbers of Ruby Tuesday or Lime Fresh restaurants. As of June 4, 2013, six of our 26 Ruby Tuesday concept franchisees had agreements to develop new franchised Ruby Tuesday restaurants. None of our five Lime Fresh concept domestic franchisees had an agreement to develop new Lime Fresh restaurants as of June 4, 2013. During fiscal 2013, 2012, and 2011, our Ruby Tuesday franchisees opened two, six, and eight restaurants, respectively, pursuant to development agreements, as follows:

	Ruby Tuesday				Lime Fresh
Fiscal Year	Franchise Partnerships	Other Domestic	International	Total
2013	–	–	2	2	2*
2012	–	2	4	6	4*
2011	1	4	3**	8	–

*As discussed further in Note 4 to the Consolidated Financial Statements, on April 11, 2012 we acquired the royalty stream from four open, and one not yet open, Lime Fresh franchise restaurants. This restaurant opened in fiscal 2013. Additionally, one of the Lime Fresh franchise restaurant openings during fiscal 2013 was opened in Chile by an international franchisee.

** Includes one Wok Hay opening.

In conjunction with these openings, we recognized development and licensing fee income totaling $0.2 million, $0.2 million, and $0.4 million in fiscal 2013, 2012, and 2011, respectively.

Deferred development and licensing fees associated with all franchisees totaled $0.8 million at both June 4, 2013 and June 5, 2012. We will recognize these fees as income when we have substantially performed all material services and the restaurant has opened for business.

As part of the franchise partnership program, we sponsored and served as partial guarantor for certain credit facilities to assist franchise partnerships with new restaurant development, working capital, and operational cash flow requirements. During fiscal 2011, we recorded an expense of $6.7 million associated with the payment of guarantees to lenders for certain debt for two of our franchise partnerships, both of which have closed or sold their restaurants during the prior year. See Note 14 to the Consolidated Financial Statements for more information on these guarantee payments.