Note 3 - Franchise Programs

3 Months Ended

Sep. 05, 2017

Notes to Financial Statements

Franchise Programs [Text Block]

3.

Franchise Programs

As of

September 5, 2017,

our franchisees collectively operated

58

domestic and international Ruby Tuesday restaurants. We do

not

own any equity interest in our franchisees.

Under the terms of the franchise operating agreements, we charge a royalty fee (generally

4.0%

of monthly gross sales), a marketing and purchasing fee (generally

1.5%

of monthly gross sales), and a national advertising fee (generally

1.5%

of monthly gross sales as of

September 5, 2017,

but up to a maximum of

3.0%

under the terms of the franchise operating agreements).

Amounts received from franchisees for the marketing and purchasing

 fee and national advertising fee are considered by RTI to be reimbursements, recorded on an accrual basis as earned, and have been netted against Marketing expenses, net in the Condensed Consolidated Statements of Operations and Comprehensive Loss. For the

13

weeks ended

September 5, 2017

and

August 30, 2016,

we recorded

$0.4

million and

$0.2

million, respectively, in marketing and purchasing fees and national advertising fund fees.