Subsequent Events

6 Months Ended

Jun. 28, 2011

Subsequent Events [Abstract]

Subsequent Events

Note 12. Subsequent Events

The Company has had initiatives underway to better align its Paradise Company-owned and franchise-operated bakery-cafes. These actions resulted in the acquisition of the one franchisee as well as the mutual termination of franchisee agreements and de-identification of cafes associated with two other franchisees.

On July 26, 2011, the Company purchased substantially all the assets and certain liabilities of five Paradise bakery-cafes and the area development rights from an Indiana franchisee for a purchase price of approximately $5.1 million, which the Company paid with cash on hand at the time of closing. The Company’s results for the reported periods were not impacted by this acquisition as it was completed subsequent to June 28, 2011.

Effective June 30, 2011, the franchisee agreements for 13 franchise-operated Paradise bakery-cafes in the Denver and Portland markets were mutually terminated and the aforementioned cafes de-identified from the Paradise brand. The de-identified bakery-cafes will no longer display the Paradise name or resemblance, nor will they retain any operating relationships with the Company.