Franchise Programs

As of

June 6, 2017,

our franchise programs included arrangements with

domestic and international Ruby Tuesday concept franchisees. At the end of fiscal year

2017,

our franchisees collectively operated

Ruby Tuesday 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 restaurants. As of

June 6, 2017,

seven

of our

Ruby Tuesday concept franchisees had agreements to develop new franchised Ruby Tuesday restaurants. During fiscal years

2017,

2016,

and

2015,

our Ruby Tuesday franchisees opened

one

five

, and

six

restaurants, respectively, pursuant to development agreements, as follows:

	Ruby Tuesday
Fiscal Year	Domestic		International		Total
2017		1		1		2
2016		–		5		5
2015				6		6

During fiscal years

2016

and

2015,

our then Lime Fresh franchisees opened

one

and

two

restaurants, respectively, pursuant to development agreements. However, as discussed further in Note

to the Consolidated Financial Statements, during the

fourth

quarter of fiscal year

2016,

we sold the Lime Fresh brand's intellectual property and the franchise agreements associated with

eight

Lime Fresh concept restaurants for

$4.6

million. As a result of this transaction, we had

remaining Lime Fresh concept franchisees as of

May 31, 2016.

In conjunction with these openings, we recognized development and licensing fee income totaling

an insignificant amount in fiscal year

2017

and

$0.2

million in each of fiscal years

2016

and

2015.

Deferred development and licensing fees associated with all franchisees, which are reported as a component of Other deferred liabilities in our Consolidated Balance Sheets, totaled

$0.3

million and

$0.4

million as of

June 6, 2017

and

May 31, 2016,

respectively. We will recognize these fees as income when we have substantially performed all material services and the restaurant has opened for business.