Note C - Revenues

6 Months Ended

Sep. 25, 2022

Notes to Financial Statements

Revenue from Contract with Customer [Text Block]

NOTE C – REVENUES

The Company’s disaggregated revenues for the thirteen and twenty-six weeks ended September 25, 2022 and September 26, 2021 are as follows (in thousands):

	Thirteen weeks ended				Twenty-six weeks ended
	September 25, 2022		September 26, 2021		September 25, 2022		September 26, 2021
Branded Products	$	22,030	$	19,063	$	45,201	$	35,059
Company-owned restaurants		5,271		4,437		8,994		7,766
Total sales		27,301		23,500		54,195		42,825
License royalties		8,413		7,658		19,727		18,340
Franchise royalties		1,055		1,037		1,956		1,837
Franchise fees		144		130		336		237
Total franchise fees and royalties		1,199		1,167		2,292		2,074
Advertising fund revenue		584		553		1,003		958
Total revenues	$	37,497	$	32,878	$	77,217	$	64,197

The following table disaggregates revenues by primary geographical market (in thousands):

	Thirteen weeks ended				Twenty-six weeks ended
	September 25, 2022		September 26, 2021		September 25, 2022		September 26, 2021
United States	$	36,095	$	31,878	$	74,012	$	62,479
International		1,402		1,000		3,205		1,718
Total revenues	$	37,497	$	32,878	$	77,217	$	64,197

Contract balances

The following table provides information about contract receivables and liabilities (deferred franchise fees) from contracts with customers (in thousands):

	September 25, 2022		March 27, 2022
Receivables, which are included in “Accounts and other receivables, net” (a)	$	-	$	312
Deferred franchise fees (b)	$	1,838	$	2,097

(a) Includes receivables related to “franchise fees and royalties”

(b) Deferred franchise fees of $352 and $1,486 as of September 25, 2022 and $349 and $1,748 as of March 27, 2022 are included in Deferred franchise fees – current and long term, respectively.

Significant changes in deferred franchise fees are as follows (in thousands):

	Twenty-six weeks ended
	September 25, 2022			September 26, 2021
Deferred franchise fees at beginning of period		2,097			1,773
New deferrals due to cash received and other		77			583
Revenue recognized during the period		(336	)		(237	)
Deferred franchise fees at end of period	$	1,838		$	2,119

Anticipated future recognition of deferred franchise fees

The following table reflects the estimated franchise fees to be recognized in the future related to performance obligations that are unsatisfied at the end of the period (in thousands):

	Estimate for fiscal year
2023 (a)	$	177
2024		344
2025		325
2026		291
2027		169
Thereafter		532
Total	$	1,838

(a) Represents franchise fees expected to be recognized for the remainder of the 2023 fiscal year, which includes international development fees expected to be recognized over the duration of one year or less. Amount does not include $336 of franchise fee revenue recognized for the twenty-six weeks ended September 25, 2022.

We have applied the optional exemption, as provided for under ASC Topic 606, Revenues from Contracts with Customers, which allows us to not disclose the transaction price allocated to unsatisfied performance obligations when the transaction price is a sales-based royalty.