Note 2 - Franchise Programs

12 Months Ended

Jun. 03, 2014

Franchise Programs [Abstract]

Franchise Programs [Text Block]

2.  Franchise Programs

As of June 3, 2014, our franchise programs included arrangements with 27 domestic and international Ruby Tuesday concept franchisees and five domestic Lime Fresh franchisees. At the end of fiscal 2014, our franchisees collectively operated 79 Ruby Tuesday and six Lime Fresh restaurants. We do not own any equity interest in our existing franchisees.

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 3, 2014, five of our 27 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 3, 2014. During fiscal 2014, 2013, and 2012, our Ruby Tuesday franchisees opened seven, two, and six restaurants, respectively, pursuant to development agreements, as follows:

	Ruby Tuesday						Lime Fresh
Fiscal Year	Domestic		International		Total
2014		1		6		7		2*
2013		–		2		2		2*
2012		2		4		6		4*

*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 in each of fiscal 2014 and 2013 was opened in Chile by an international franchisee. Both of these restaurants closed during the fourth quarter of fiscal 2014.

In conjunction with these openings, we recognized development and licensing fee income totaling $0.2 million in each of fiscal 2014, 2013, and 2012.

Deferred development and licensing fees associated with all franchisees totaled $0.8 million as of both June 3, 2014 and June 4, 2013. We will recognize these fees as income when we have substantially performed all material services and the restaurant has opened for business.